As we move through the fourth quarter, this is the time that fund companies start publishing their estimates for end-of-year capital gains distributions – a tax event that can have significant ramifications for investors, yet one for which its remarkably difficult to aggregate together relevant information across a wide range of investment companies.
Until now. Financial advisor (and Chief Investment Officer) Mark Wilson of The Tarbox Group has (re-)launched his Capital Gains Valet (or CapGainsValet for short) service, which pulls together all the reference links for investment company capital gains distribution estimates to a single site location. And the service is made available to advisors and other investors for free (Wilson simply asks for donations to his charity of choice).
And notably, in a year where markets have been relatively flat but many funds have significant embedded capital gains due to the past 6 years of a raging bull market, it becomes especially important to plan in advance for year-end distributions… both for those who might consider selling a recently-purchased fund with a large gain looming, or who may wish to defer buying a large-gain-distributing fund until after the end of the year. Or alternatively, at least focus on the asset location benefits of placing such gains-distributing funds (especially those with large embedded capital gains) inside of a retirement account in the first place!