Changes to Portfolios

As the first third of the year comes to an end, we are placing several trades in accounts this week. The trades continue our efforts to find alternatives to stocks and bonds that can provide reasonable returns with lower risk. Also, we are shifting our overweight in US large company growth stocks to a more neutral balance between US large growth and value. Finally, we are rebalancing accounts back toward their target allocation and investing cash. The primary trades are as follows:

1.  Sold our position in...

Changes to Tax Reporting

This is to inform you of changes in WJ Interests’ tax reporting due to recently enacted financial regulations.

Previously, investment custodians such as Charles Schwab & Co., Inc., were only required to report the proceeds received for securities sold in brokerage accounts. This is the information disclosed on Form 1099.

Proving cost basis, or the original cost of buying the investment, was the responsibility of the account holder. In order to assist clients, WJ Interests provided you and your CPA with...

Last of Direct US Treasury Position

Last week, we sold our remaining direct US treasury position (Fund ticker IEF) as the 10-year treasury yield hit our target of 2.00 percent. As we’ve mentioned in the past, we are very wary of rising rates and will take steps to protect the bond portion of portfolios as necessary. This was the first step in the process. With the proceeds, we added to our position in FPA New Income (FPNIX). The fund currently invests in short-term mortgage-backed securities and yields 2.26 percent. Keep in mind we are...

Now Is The Time To Make Contributions To Your Tax-Deferred Savings Account

It’s a new year and another opportunity to contribute to your tax-deferred savings accounts. When you contribute to your 401k, IRA or other tax-deferred savings account, the government is essentially matching your contribution at your marginal tax rate and your contribution grows tax-free until it is distributed. Whether you qualify to make a tax-deferred contribution in 2013 is dependent on many factors.

Each year, the IRS updates (and generally increases)...

Capital Gains Investment Approach

Although simply another day in the grand scheme of things, Friday, Dec. 28, 2012, will be a day of great import. It is the last day this year that the stock and bond markets will be open for trading. With the impending fiscal cliff rapidly approaching, all capital gains that we would prefer to be subject to the current 15 percent rate rather than some higher unknown rate must be recognized on or before this day. If you aren’t familiar with the fiscal cliff, please click this link to listen to our recent...