Rich seen preparing for higher tax era
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.