1330 Orange Ave., Ste 302
Coronado, CA 92118
p: 619-319-0520
f: 855-691-0427
Read financial tips and market updates in our weekly newsletter
Copyright © 2002 – 2023 Orion Capital Management LLC • Coronado, CA
Disclosure: Orion Capital Management LLC (“Orion”) is an investment advisor registered with the U.S. Securities and Exchange Commission (SEC). The firm offers advisory services in the State of California and in other jurisdictions where registered or exempted. Registration does not imply a certain level of skill or training. The information on Orion’s website or in its distributed commentary shall not be directly or indirectly interpreted as a solicitation of investment advisory services to persons or entities of another jurisdiction unless otherwise permitted by statute. Orion’s individualized responses to consumers in a particular state in the rendering of personalized investment advice for compensation shall not be made without the firm first complying with jurisdiction requirements or pursuant to an applicable state exemption.
The information on Orion’s website or in its distributed commentary is not investment, tax, accounting or legal advice. Orion is not a tax advisor. For tax advice individuals should consult their CPA. This information is also not an offer or a solicitation of an offer to buy or sell any security, or to be construed as an endorsement of any company, security, fund, or other securities or non-securities offering. This information should not be relied upon in the making of investment decisions. All content on this site is for informational purposes only, and nothing herein should be construed as an investment recommendation. Opinions expressed herein are solely those of Orion, unless otherwise specifically cited. Material presented is believed to be from reliable sources, but no representations are made by our firm as to other parties’ informational accuracy or completeness. All information or ideas described on Orion’s website or in its distributed commentary should be discussed in detail with an investor’s personal financial advisors and legal counsel prior to implementation.
Past performance is no indication of future results. Investment in securities involves significant risk and has the potential for partial or complete loss of funds invested.
The information on Orion’s website or in its distributed commentary is provided “AS IS” and without warranties of any kind, either express or implied. To the fullest extent permissible pursuant to applicable laws, Orion Capital Management LLC disclaims all warranties, express or implied, including, but not limited to, implied warranties of merchantability, non-infringement, and suitability for a particular purpose.
Testimonials or reviews on Orion’s website are from current clients. Orion does not compensate for reviews or testimonials and has no material conflicts with clients offering reviews.
Orion does not warrant that the information on Orion’s website or in its distributed commentary will be free from error. Your use of this information is at your sole risk. Under no circumstances shall Orion be liable for any direct, indirect, special or consequential damages that result from the use of, or the inability to use, the information provided on this site, even if Orion or an Orion authorized representative has been advised of the possibility of such damages. Information contained on this site should not be considered a solicitation to buy or an offer to sell any security, or a recommendation to buy or sell any security in any jurisdiction where such offer, solicitation, or recommendation would be unlawful or unauthorized.
Schedule a quick introductory call with you and see if we would be a good fit for you.
5 Financial Tips for Year-End
As the end of year approaches, there are several things investors should do to ensure they are putting themselves on the best possible financial footing for 2016.
1. Max Out Your Retirement Plan Contributions
The easiest money you will make in 2016 is the tax savings you will generate by contributing the maximum amount possible to tax-deferred retirement plans such as IRAs, 401(k)s or defined benefit plans. Those with high income from self-employment are in a particularly good situation to reduce their tax bill. Individual 401(k)s, SEP-IRAs and Defined Benefit Plans (and the high tax-deductible contributions that go with them) may all be fair game for the self-employed. Make sure you have set up the most advantageous plan for your situation. Click here to see more details on this topic.
2. Realize losses in your taxable accounts
If you have realized capital losses in any of your investments, you can use them to offset any realized capital gains. If your realized losses exceed your realized gains by $3,000 or more, you can offset $3,000 of your taxable income with your capital loss. Any realized losses above $3,000 can be carried over to successive tax years. In general, if you must realize capital gains, try to make them long-term gains, which are taxed at a lower rate than short-term gains.
Also, be strategic about when you buy or sell mutual funds in taxable accounts late in the year. Typically, most funds make their capital gains distributions in the last few months of the year. Be careful not to buy into a fund that is just about to make distributions—as you will receive taxable distributions that did you no good whatsoever! In taxable accounts it is usually better to buy into funds after they have made their annual distributions and to sell any funds before they make distributions.
3. Know (or Reassess) Your Tolerance for Portfolio Risk
Knowing how much investment risk you can comfortably withstand is critical, and can help you from making very damaging decisions when the markets take their occasional tumble. We employ a method of measuring risk tolerance based on dollar values. You can take our two-minute survey here to find out your personal Risk Number. Once you know your Risk Number, you should measure whether your portfolio is truly reflective of your risk tolerance. Many people will find that the risks lurking in their portfolios are actually much higher than they expect. Knowing your Risk Number and matching your portfolio’s Risk Number to it is a great way to help you stay the course through the inevitable bouts of market turmoil. Feel free to contact us directly if you would like us to assist you in finding our your Risk Number.
4. Have a Rebalancing Plan (and stick to it)
Periodically rebalancing your portfolio to its target asset class weightings can make the process of “buying low and selling high” systematic and unemotional. Emotionally, it is easier to add to whatever asset class has recently done well and to sell that which has done poorly. In the long run, however, it is better to add to worthy assets classes that have become cheap and to reduce exposure to asset classes that have become relatively expensive. Regular rebalancing will also help to prevent you from becoming over-exposed to any particular asset class.
5. Resolve to Play the Long Game When it Comes to Investing
Most people are investing today to build a retirement nest egg that will be tapped decades in the future. Thus, worrying whether the stock or bond market was up or down this week or month is unproductive. Market pullbacks should be seen as opportunities to add to investments when they are temporarily cheaper, not as reasons to sell. Knowing your risk tolerance and having a long-term focus do wonders for helping you rest easier today.
Share This!
Join Our list!
Join our email newsletter list to receive more market updates and financial articles like this one.
Inflation Cools, Boosting Stocks and Bonds
Stocks and Bonds Enjoy Fading Inflation So far this quarter, markets have hewed closely to their seasonal tendencies. While September
Your 2023 Year-end Tax Strategy Checklist
For most people, paying taxes and buying a house are the two biggest expenses of their lifetimes. The tax code
Fed Making Markets Queasy
September Lived Up to its Reputation Historically, September and October are the two worst months for returns in the U.S.
Peter Thoms, CFA, MBA