The Weekly Wealth of Knowledge is your download of this week's most important topics related to financial planning, the markets, and our community. December is small business month at MONECO Advisors, so we will be providing more content related to that in the next few weeks.
In this issue:
- Understanding Mutual Fund Distributions (2 min read)
- 10 Tips to Support Small Business (2 min read)
- MONECO's Holiday Message
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This week, Senior Relationship Manager, Jose Vivero is featured in our introduction video!
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Understanding Mutual Fund Distributions
This time of year, you might glance at an account statement and see there has been an adjustment. But there may not be any cause for concern. Many mutual funds in December pay shareholders capital gains distributions that they have accumulated throughout the year.1 Typically, mutual fund companies start making estimates about distributions as early as November and most finalize the payment by mid-December.1
It’s important to remember that if your mutual fund is in a tax-deferred account—and you are reinvesting distributions—the potential distributions may be a non-event at this time. But you may owe taxes when you begin to sell your holdings. On the other hand, if your mutual fund is in a taxable account, you may owe 2020 taxes on the distributions whether you reinvested the distribution or accepted payment.
Most of the larger mutual funds companies have posted information on their websites regarding year-end distributions. But the estimates can be confusing, so please contact our offices, and we may be able to provide some guidance.
Remember, today’s update is for informational purposes only and is not a replacement for real-life advice. Mutual fund distributions may only be one part of your overall tax situation, so make sure to consult your tax, legal, or accounting professional before modifying your strategy.
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10 Tips to Support Small Business
As the holiday shopping season wraps up, it has never been more important to "think local" for all of your gift giving needs this season. Although December is small business month at MONECO, we would like to remind everyone that supporting your local merchants throughout the year in your own communities is just as important. Read the list of ways you can do this all year round, to ensure they remain as anchors in the towns you reside in.
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MONECO's Holiday Message
As 2020 draws to a close, the entire MONECO team would just like to say "thank you" to all of our clients and partners. We can’t say it was an easy one, but you continued to entrust us with your financial well-being and planning needs during some unprecedented times and we all feel honored that you have granted us this enormous responsibility.
While the year’s financial ups and downs have given us quite a ride, it has meant the world to our entire team to remain connected and be able to support you, as well as our community. Now more than ever, we understand the depth of what community truly means and the deep friendships we have with you our clients
Wishing you the very best throughout this holiday season and a happy and prosperous new year to come.
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1. Morningstar.com, November 9, 2020
Mutual funds are sold only by prospectus. You should consider the charges, risks, expenses, and investment objectives carefully before investing. A prospectus containing this and other information about the investment company can be obtained from your financial professional. Read it carefully before you invest or send money.
Investing involves risks, and investment decisions should be based on your own goals, time horizon and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost.