Summit Notebook

Exclusive outtakes from industry leaders

Rich seen preparing for higher tax era

October 12, 2007

We may be more than a year away from the U.S. presidential election but the nation’s rich are already getting prepared for a higher tax era by shifting their money into different assets, according to some wealth managers. There is already a lot of concern about the implications of the election and a change in the political and budgetary climate, says Gail Cohen, head of global wealth management at Fiduciary Trust Co. International.

In are: tax-exempt bonds, high-growth stocks, hedge funds, real estate investment trusts and ways of engineering tax-free gifts for offspring.

Out are: high dividend stocks, while investments already well in the money are more likely to be sold to avoid any additional capital gains hit. 

 

Post Your Comment

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
  •