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How Long Can I Carry Forward My Capital Gain Losses?

We are almost two-thirds done with 2013 and some of you haven’t even completed your tax returns.  For those of you who filed and finished your tax returns in April, most of that paperwork is neatly tucked away in your home filing cabinet.   Since the stock market has run up over the past year most investors have made gains in their stock and stock mutual fund positions.   However, the majority of tax payers never look at their capital losses from prior years to do effective tax planning.  So just how long can you carry forward your capital gain losses? First, you should be aware that you can sponge up capital gains year to year against any capital losses or carry forward losses that you have on your tax return.   This means if you have a carry forward loss of $30,000 from a prior year and had $30,000 of long-term capital gains here in 2013, you would essentially have a wash.   ...

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The Key Differences Between Index Funds & Traditional Mutual Funds

Kalen Smith writes about investing, retirement, and economic policy on Money Crashers Personal Finance. For the sake of convenience, many investors do not look to manage their own portfolios or choose their own investments. Investors who don’t want to take the time to manage their own portfolios may be interested in purchasing shares in either an actively managed mutual fund or in an index fund. Although both types of funds seek to make things easier for investors, they have different objectives that may make one more appropriate than the other for certain investors. Differences Between Index Funds & Actively Managed Mutual Funds An index fund is set up to match the performance of a particular index, such as the S&P 500. The fund accomplishes this by simply purchasing the same investments in the index it represents, and since the securities in many indices stay relatively constant, there is no need for frequent buying and selling of index fund holdings. An ...

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Some look to “The Stock Trader’s Almanac” to develop their investment strategy.

Growing up in Iowa “The Old Farmer’s Almanac” provided planting charts for those who lived on the farm giving advice as to when to plant as well as information about weather forecasts for that years growing season. Equity traders generally have their own version “The Stock Trader’s Almanac” to provide educational information on investing.  According to “The Stock Trader’s Almanac” over the past thirteen and a half years, starting in September of 1997 through February of 2011, if you has bought the Dow Jones Industrial Average at the end of the last trading day of each month and sold it at the end of the first trading day of the next month, you would have ended up with a total gain of 6,021 points for just 162 days of exposure to the market.  Additionally, if you had traded on the 3,215 other days, you would have lost a combined 1,604 points over the same period.  However, we do not recommend ...

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