“Don’t tax you, don’t tax me, tax that fellow behind the tree,” quipped Senator Russell Long, who chaired the powerful Senate Finance Committee from 1966-1980. In 2017, as the year wound to a close, House Republicans introduced their version of tax reform.
There is no “perfect” allocation to stocks and bonds, as an individual’s allocation should be based on their portfolio’s ability to assume risk and their appetite for risk. For some, a mix of 0% stocks and 100% bonds may be sufficient.
As investors approach the end of each calendar year, attention often turns toward mutual fund capital gain distributions and the potential income taxes the distributions may generate.