Michael Wagner Discusses Portfolio Tax Management with U.S. News & World Report
With the potential for higher tax rates for capital gains looming and the markets becoming more and more volatile, many investors have a heightened focus on making their portfolios tax efficient. To help investors learn more about portfolio tax management, U.S. News & World Report spoke with Omnia Family Wealth Co-Founder and Chief Operating Officer Michael Wagner for insight.
According to Wagner, while tax management is important for portfolios, it should not be the only factor investors focus on – especially if it begins to obscure their overall investment strategy. “You don’t want to let the tax tail wag the investment dog,” he tells the publication.
Wagner emphasizes that the importance of not losing site of the big picture is especially true when rebalancing portfolios. With the markets rising to record-highs over the past few years, many investors have been reluctant to sell their winning stocks because of capital gains taxes. However, a portfolio that is out of balance comes with its own set of risks.
“Nobody likes paying taxes,” says Wagner. “But the fact is, from a rebalancing perspective, it’s absolutely the right thing to do.”