Posted by on Dec 3, 2018 in Articles & Advice, Blog, Columns, Featured |

Image Credit: Alex Nabaum

By Jason Zweig |  Nov. 30, 2018 12:00 p.m. ET


Mutual-fund investors got to express their gratitude on Thanksgiving. Many of them won’t feel so appreciative between now and year end.

This tax year is shaping up as one of the worst on record for investors with mutual funds outside of retirement accounts. That’s despite muted returns for many funds and stocks generally—the S&P 500 is up 4.2% through Nov. 29, including dividends.

The issue: Mutual funds effectively must distribute all their realized capital gains, or profits on securities they have sold during the year. And, so far, through Nov. 29, 517 funds have announced they will pay out at least 10% of net assets as taxable gains, says Mark Wilson of Mile Wealth Management in Irvine, Calif., who runs a website tracking these payouts, He estimates that by year end, 531 funds will pay such large taxable distributions.


To read the rest of the column:


For further reading:


Benjamin Graham, The Intelligent Investor

Jason Zweig, The Devil’s Financial Dictionary

Jason Zweig, Your Money and Your Brain

Jason Zweig, The Little Book of Safe Money

Articles and other research:


A Long Time Coming

And Now for Something on Index Funds

The Rot That Lies Beneath Some Index Funds

Mutual Fund Tax Bombs