April 26, 2021
The tax increase on capital gains proposed by President Biden last week caused some investors to panic. While a 43.4% tax rate seems alarmingly high, does the average investor have an actual cause to be concerned? The answer is no. This rate would only apply to those with gross income (or assuming AGI until we get more guidance) greater than 1 million dollars per year, which amounts to only about 0.5% of Americans. However, for those that could be affected, there may be no better time to utilize the proven effective buy and hold method of investing, especially within taxable accounts. To speak with an expert about your portfolio, reach out to us today!
Carol Dixon, CFP® & Kevin DeRosa, CRPC®