WHY TAKE CAPITAL GAINS?

Even though capital gains taxes make selling appreciated securities less attractive, there are often compelling reasons to reduce or liquidate a position. The two most common reasons to sell appreciated stock are to increase portfolio diversification and boost long-term returns. Capital gains taxes are the main deterrent to selling a stock which has appreciated in value relative to its purchase price. The Federal government currently assesses a maximum combined long-term capital gains/investment income tax of 23.8% on appreciation that has occurred more than one year from date of acquisition. Stock…

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HECKERLING INSIGHTS: POTENTIAL IMPACTS TO WEALTH PLANNING

Eagle Ridge attended the 55th Annual Heckerling Institute on Estate Planning held virtually the week of May 3rd. We are pleased to share some insights with you from this event, which is traditionally attended by the nation’s top wealth advisors, for consideration and discussion with your professional advisors.

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SPACs: THE FUTURE OR A FAD?

There was a record volume of Special Purpose Acquisition Company (SPAC) Initial Public Offerings (IPO) in the first quarter, but questions remain about the sustainability of the trend. The record volume was most likely a result of the stock market surge over the last twelve months or so — many private companies were looking to access the public markets quickly. However, the SPAC growth slowed in April, at least in part due to the SEC. SPACs represented about 21% of global equity issuances in the first quarter, but only 3%…

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INVESTMENT COMMENTARY – FIRST QUARTER, 2021

The US economy contracted by 2.3% last year as a result of the pandemic. Economic activity dropped precipitously in late March of 2020 and then rebounded strongly in the 3rd Quarter. Much of the contraction obviously related to the curtailment of in-person activities such as dining, travel, and entertainment. Consensus forecasts, which assume the vaccines protect against COVID variants and prevent another wave of infection, call for the economy to grow 6-7% this year. However, we expect the economic recovery to exceed expectations due to pent-up demand...

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