March 01, 2013 - Highlights From Morningstar's Tax-Relief Week - by Morningstar Investment Research
In case you missed anything from this week's Tax-Relief special report, you can gain access to our full lineup of tips, picks, and strategies on Morningstar.com.
As congressional wrangling continues in Washington, despite the recent fiscal cliff compromise at the beginning of the year, ongoing national debt woes still mean that higher taxes, fewer deductions, or both could be coming down the pike in the years ahead, and possibly not just for the wealthy.
Because of the strong likelihood for tax hikes in the future, a sturdy, yet flexible tax plan (always an important consideration for investors) is even more critical today. Although tax considerations shouldn't drive your portfolio, you certainly don't want taxes to drag on your r esults any more than absolutely necessary--especially if you believe the stock and bond markets will be serving up more moderate returns in the coming years.
This week, Morningstar's experts dug into the latest tax changes, laid out a sensible plan for investment-tax management, and offered up some of our favorite tax-efficient picks (for taxable accounts) as well as some topnotch ideas for your IRA.
Below are some of the highlights from our Tax-Relief Week.
Investment-Related Taxes: Must-Knows for 2013
Our Top IRA Picks
4 Bond Funds for Your Taxable Account
5 Tax-Planning Tips for Retirees
Don't Make These Tax Mistakes
You can get all of our insights, picks, and tips from our Tax-Relief Week by clicking here.
Among the other topics we addressed this week:
Where to Invest $10,000, $25,000, or $50,000. Get started with these great funds.
For High Tax-Free Income, Consider These Funds. Indexing is not always the way to go for some muni funds.
Reverse Alchemy. How one fund turned its Morningstar Analyst Rating from Gold to Neutral and other recent ratings changes.
At BlackRock, a Host of Equity Manager Changes. Plus, Harbor Capital Appreciation gets a new comanager, some Vanguard expense ratios fall, Oppenheimer changes a value manager, Vanguard rotates some bond fund managers, a Lord Abbett small-cap blend manager leaves, and more.
The World's Biggest Active ETF Celebrates Its First Birthday. Looking back on a banner year for the PIMCO Total Return ETF.
Low Interest Rates Haven't Stopped This Bank-Loan Fund. Consider adding this floating-rate fund to your watch list.
Equities Retreat as Corporate Bonds Hold Their Own. What could shake the credit markets' sanguine disposition in the near term? Consumer spending, China, and Europe, according to Morningstar's Dave Sekera.
3 Consumer Cyclical Names at Bargain Prices. Despite headwinds from the payroll tax-cut expiration, the sky isn't falling on consumer spending, and these firms look undervalued.
Faulty Bolts Create Headaches for Offshore Industry. Offshore drillers face potential downtime headwinds in 2013, but this is unlikely to affect our fair value estimates.
Guggenheim to Close 9 ETFs. State Street debuts 2 low-volatility ETFs devoted to the Russell 1000 and Russell 2000 Indexes, Vanguard reduces the expense ratio of its high-dividend-yield ETF, and IndexIQ proposes a pair of new funds. Plus, the week's best and worst performers.