Annual investing to-dos

- I'm sure at the end of the year,…the last thing you want to think about is your finances.…But a little bit of work at the end of the year…can help you a great deal in the long run.…First, you should know that on December 31st,…the tax authorities close the books on your financial year.…So you should address a couple of tax issues…before the year ends.…The most important thing you should do…is calculate your capital gains and losses.…If you sold an investment during the year,…you'll have a financial gain or loss…that carries a tax implication.…Your investment company statement will show these.…

If you have a large capital gain for the year…that you want to reduce, look to see if you have…a potential capital loss sitting in your portfolio.…By selling an investment that carries a capital loss,…you can lower your overall capital gains obligation…for the year.…This is called tax lost harvesting, and it's common way…to reduce your capital gains obligations.…Just know, that in many countries, you can't re-buy…that losing investment for at least 30 days.…