Duncan Richardson
Duncan Richardson
biggest cost mutual single taxes
Taxes can be the single biggest cost of mutual funds.
environment last pay quarter return taxes uncle year
Up to a quarter of an investor's return can be surrendered to Uncle Sam, and in a low-return environment like we experienced last year that can be meaningful. I'm patriotic, but you should not pay too much in taxes if you don't have to.
clue
But they don't have a clue as to what to do about them.
people tax
A lot of people don't even know their tax bracket.
concern confused express hat investing investors subject taxes
Investors express concern about taxes and the tax implications of investing but are confused by a subject hat can become complicated very quickly.
awakening aware fund funds horrified investors large last learn less lost low might money mutual negative paid paying returns rude taxable taxes
Investors who had been less aware of mutual fund taxes had a rude awakening in 2000, when many funds had low or negative returns but still paid out large taxable distributions. Many shareholders who, in the past, might have been dismissive about fund taxes were horrified to learn they will be paying taxes on fund investments on which they lost money last year.