IS THERE A GOOD POINT TO SELL MUTUAL FUNDS TO RESET THE TAX VALUE BASE?
Christine Benz says if you are planning to buy a mutual fund that’s about to make a big distribution, then you should wait. By the same token, if you are going to sell a fund anyway, better to wait before the distribution because that distribution can cut into your return. For the most part, don’t get too fancy with tax maneuvering of your mutual fund. SUZE SAYS: Mutual funds are mandated so that at the end of the year gains must be distributed to a shareholder. If an individual owns shares of a mutual fund and it has a capital gain distribution, you will get a check for a certain amount of money on which you will owe taxes. So if you happen to buy a mutual fund that is about to distribute that gain, you could have an immediate loss when you buy. For this reason, Suze says that when you buy a mutual fund is more important than when you sell a mutual fund. TO MINIMIZE YOUR TAX BURDEN, CHRISTINE BENZ SAYS: Avoid buying a fund at the end of the year. Wait until the beginning of the follow
