Friday, July 20 , 2018, 1:58 pm | Fair 75º



Mark Delgadillo: Year-End Investment Moves Can Pay Off

Mark Delgadillo
Mark Delgadillo

What’s on your end-of-the-year to-do list? Shopping for gifts? Making travel plans? Hosting a party? What about spending some time with your investments?

Conducting a review and making important strategy decisions before 2012 comes to a close can help you get your portfolio on the right track for 2013.

Review, reassess, rebalance

Review your portfolio to see if investments are performing as you expected when you chose them and to help ensure your asset allocation hasn’t strayed from your risk tolerance comfort zone.

From year to year, various asset classes may perform differently in response to market and economic conditions. If one asset class now represents a greater percentage of your portfolio than you intended, consider rebalancing to bring your portfolio back to its original mix.

Also consider whether your time horizon, risk tolerance or goals have changed since you chose your investments. If so, rebalancing can bring your investment mix more in line with your current thinking.

Hold on for a better tax deal

Before you sell an investment, consider how long you’ve owned it. Gains on investments held longer than one year generally qualify for long-term capital gains tax rates when you sell. Currently, the capital gains rates on most long-term investments are 15 percent for most taxpayers and zero for those in the lowest two tax brackets (in 2012). Gains on assets held for one year or less are taxed at your regular income-tax rate, which could be as high as 35 percent. The rate differential may make a significant difference in your tax bill.

Fund your retirement

You may be able to deduct all or a portion of contributions you make to a traditional individual retirement account (IRA) by April 15, 2013, on your 2012 income-tax return. Talk to your tax advisor about the deduction requirements. Your financial professional can provide investment options that fit your personal financial situations.

— Mark Delgadillo is a financial advisor for Crowell, Weedon & Co., 111 W. Micheltorena St., Suite 200, in Santa Barbara. He can be reached at 805.618.3160, or click here for more information.

Support Noozhawk Today

You are an important ally in our mission to deliver clear, objective, high-quality professional news reporting for Santa Barbara, Goleta and the rest of Santa Barbara County. Join the Hawks Club today to help keep Noozhawk soaring.

We offer four membership levels: $5 a month, $10 a month, $25 a month or $1 a week. Payments can be made through Stripe below, or click here for information on recurring credit-card payments and a mailing address for checks.

Thank you for your vital support.

Become a Noozhawk Supporter

First name
Last name
Enter your email
Select your membership level

Payment Information

You are purchasing:

Payment Method

Pay by Credit Card:

Mastercard, Visa, American Express, Discover
One click only, please!

Pay with Apple Pay or Google Pay:

Noozhawk partners with Stripe to provide secure invoicing and payments processing.

  • Ask
  • Vote
  • Investigate
  • Answer

Noozhawk Asks: What’s Your Question?

Welcome to Noozhawk Asks, a new feature in which you ask the questions, you help decide what Noozhawk investigates, and you work with us to find the answers.

Here’s how it works: You share your questions with us in the nearby box. In some cases, we may work with you to find the answers. In others, we may ask you to vote on your top choices to help us narrow the scope. And we’ll be regularly asking you for your feedback on a specific issue or topic.

We also expect to work together with the reader who asked the winning questions to find the answer together. Noozhawk’s objective is to come at questions from a place of curiosity and openness, and we believe a transparent collaboration is the key to achieve it.

The results of our investigation will be published here in this Noozhawk Asks section. Once or twice a month, we plan to do a review of what was asked and answered.

Thanks for asking!

Click Here to Get Started >

Reader Comments

Noozhawk is no longer accepting reader comments on our articles. Click here for the announcement. Readers are instead invited to submit letters to the editor by emailing them to [email protected]. Please provide your full name and community, as well as contact information for verification purposes only.

Daily Noozhawk

Subscribe to Noozhawk's A.M. Report, our free e-Bulletin sent out every day at 4:15 a.m. with Noozhawk's top stories, hand-picked by the editors.

Sign Up Now >

Meet Your Realtor Sponsored by Village Properties

Photo of Patricia Griffin
Patricia Griffin
"I am very hands on and feel that each transaction is special and different. My clients goals are foremost in what I do to bring about a successful transaction."

Full Profile >