Re-balance Cycle Reminder All MyPlanIQ’s newsletters are archived here.

For regular SAA and TAA portfolios, the next re-balance will be on Monday, August 20, 2018. You can also find the re-balance calendar for 2017 on ‘Dashboard‘ page once you log in.

As a reminder to expert users: advanced portfolios are still re-balanced based on their original re-balance schedules and they are not the same as those used in Strategic and Tactical Asset Allocation (SAA and TAA) portfolios of a plan.

Please note that we now list the next re-balance date on every portfolio page.

Tax Efficient Portfolios

We continue to answer an often asked question (which was also asked by the same user whose another part of question was discussed in our previous newsletter July 9, 2018: Conservative Allocation Mutual Funds Based Portfolios): how to construct a tax efficient portfolio. 

Tax efficient stock investments

An investor’s overall investments mainly consist of two parts: stock (equity) and bond investments. For stock investments, there are strategic (buy and hold) and tactical (active) portfolios. To avoid tax incurred in an investment lifetime, one should minimize capital gain tax, especially short term capital gain tax (investments sold in less than a year). A natural way is to buy and hold securities for a long time. 

Holding a security for a long time works also for the nature of compounding (see for example, April 9, 2018: Exponential Or Compounding Nature In Investing). In general, as what we have discussed numerously times, for capitals that are deemed not to be needed for a long time (by MyPlanIQ’s standard, at least more than 15 years, preferably more than 20 years), one should really considering to invest such capitals in a long term buy and hold SAA portfolio, as long as when you start to invest, stock valuation is at a reasonable level. 

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