Tuesday, January 22, 2019
Tax season is upon us, so while you are going through all your forms, statements, and records, be ready to address some of the following questions with your tax advisor:
1) What are your personal and professional goals for this year?
2) What were your savings goals? Were they realistic? Did you meet them? How will they change?
3) Are you working within a budget? Do you track ALL of your expenses?
4) Why do you have such a large tax bill for interest and dividend income?
5) Why did you receive such a large tax bill for capital gains without seeing the account performance?
6) Are you taking advantage of allowable deductions through your business or employer?
7) Are you taking advantage of any loss carry forward amounts? If not, why not?
While this is not an exhaustive list, it will give you the guidance to confront what you need to improve and confirm what you are doing well. Taxes are based on facts and their supporting documents, so make sure that your advisors understand all of the pieces of your financial puzzle to help you figure out and potentially reduce your tax liability.
Did You Know? More than 20 percent of returns filed on paper have at least one error; this can raise the odds of an audit or delay a refund. Consider E-filing to save you a potential headache.
The Investor Education Institute (“IEI”) is not an
investment adviser registered with the U.S. Securities and Exchange Commission
or any state. The IEI publishes financial
publications of general and regular circulation that offer impersonal advice
and disinterested commentary and analysis.
The IEI utilizes a Proactive Asset Allocation Model (“PAAM”)
that is designed to provide insight into investing in today’s financial
markets. PAAM utilizes quantitative-based buy, sell and reallocation indicators,
selecting from US and global securities, in seeking to achieve attractive
risk-adjusted returns over a long-term investment horizon. As with any
investment strategy, IEI has in the past, and may in the future, modify this
investment approach and parameters of PAAM in any manner which it believes is
consistent with the strategy’s overall investment objective. In that light, the following material
modifications were made to PAAM: in February 2009 (creation of Universe Trend
and Cash Comparison Indicators for trend analysis), June 2009 (creation of
Long-Term Momentum Indicator for trend analysis), September 2009 (expanded
Asset Class Ranking System and started computerized testing), December 2009
(creation of Global Indicator Set for buy and sell signals), April 2010 (inception
of PAAM Computer Model), October 2010 (implementation of Tactical Indicators
and Signals for short term risk management), January 2011 (modify Global Sell
Signal with additional criteria including pattern determination), June 2011
(close Global Signals with stop loss criteria), September 2011 (inception of
Long Only Model), May 2012 (modify Global Buy Signal wait period to enhance
signal timing), October 2012 (first use of Stock Model), November 2012
(implement ETF replacement criteria), December 2012 (additional historical data
for Cash Comparison Indicators), November 2015 (modify Global Buy Signal with
additional criteria), June 2016 (modify Tactical Sell signal criteria), May
2018 (expanded Asset Class Ranking System, Tactical Asset Class Selling,
Mini-Buy signal implementation); however, none of these changes modified the
objectives or overall investment strategy of PAAM. Rather, as noted previously,
IEI made these changes to seek to enhance the manner by which it runs PAAM, and
thus each change, individually or in the aggregate, might have impacted the
performance of PAAM (either positively or negatively, depending upon the
efficacy of the changes(s)) after their implementation. For more information regarding any of these
material modifications, please contact IEI at 1-800-504-8505.
The performance returns and investment strategies presented
use PAAM and do not represent the results of actual trading using real assets. PAAM
performance returns reflect the assumptions, views and analytical methods
developed by members of the IEI. Hypothetical or model performance returns have
certain inherent limitations. Unlike actual performance results, model
performance results do not represent actual trading and the results may have
under- or over-compensated for the impact, if any, of certain market factors,
such as market disruptions, lack of liquidity and the effect of interest rates.
There can be no assurance that PAAM will perform similarly in the future. No representation is being made that PAAM
will or is likely to achieve returns similar to those shown. There frequently
are sharp differences between the hypothetical or model performance results and
the results subsequently achieved by PAAM when tracking performance results in
real time. PAAM performance results are shown net of any assumed expenses or
estimated fees (i.e., an estimated $10 brokerage fee per portfolio
transaction), and reflect the reinvestment of dividends and other earnings. PAAM
results shown reflect the hypothetical purchase and sale of securities using
the average of the high and low price on the day the security was
hypothetically transacted. Where a security was not available to represent
exposure to a specific asset class, an index was used in its place. Past
performance is not a guarantee of future results.
Any index information presented is included for comparative
purposes, to show general market trends during the periods indicated, and is
not intended to imply that PAAM is similar to the index (or indices) shown
either in composition or element of risk.
The MSCI All Country World Total Return Index is a broad index composed
of stocks from the US, Developed International and Emerging International
markets. It is shown for comparative
purposes because it represents the areas that PAAM considers for inclusion in
the model, however, it should be noted that at any given time, the PAAM model
will include securities from a narrow subset of these areas.
The information presented should not be considered a
recommendation to purchase or sell any particular security. The information
shown is not tailored to any individual. There can be no assurance that any
securities presented would be selected by PAAM in the future. The securities listed for each model
represent all portfolio holdings in that model as of the date shown. Specific securities presented do not
represent all securities that may be selected by PAAM for other models. It should not be assumed that any of the
securities presented have been or will be profitable. The examples of specific investments are
included merely to illustrate PAAM.
No graph, chart, formula or other device can be used to
determine which securities to buy or sell, or when to buy or sell them. IEI
makes no representation that any graph, chart, formula or other device shown
can assist any person in making their own decisions as to which securities to
buy or sell or when to buy or sell them.
You should consider risk and volatility in addition to
performance when making any investment decision. The risk and volatility
associated with PAAM may be significantly higher or lower than the risk and
volatility of other investment strategies and/or products.
As with any investment strategy, there is potential for
profit as well as of loss. All investments involve some level of risk, and an
account that utilizes PAAM may not be suitable for your particular investment
goals. This presentation is intended solely for informational purposes. The
information presented is in no way a
solicitation or an offer to buy or sell any securities or investment advisory
services. The information presented and any performance returns and sample
investment portfolios contained herein do not consider specific investment
objectives, financial situations or the particular needs of any individual
investor who may view this presentation. You should seek advice from your
financial advisor regarding the appropriateness of investing in any securities
or in accordance with any investment strategy.
All information regarding market or other financial
information presented is obtained from sources that IEI believes to be
reliable. IEI makes no representation as to the accuracy or completeness of
information or data provided herein. Individuals that work for IEI and its
affiliates may have long or short positions in the securities presented herein,
or in related investments.
Any projections, market outlooks or estimates presented are
forward-looking statements and are based on certain assumptions. Other events which were not taken into
account may occur and may significantly affect the returns or performance of PAAM. Any projections, outlooks or estimates should
not be construed to be indicative of actual events that will occur.
For additional information, please contact us via phone at
1-800-504-8505, or via email at IEI@instituteforinvestors.com.
Building Your Wealth …Proactively
The Investor Education Institute provides you with unbiased educational materials and proactive strategies designed to empower you to handle variable market conditions, and invest with confidence.
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