Duncan Richardson, Eaton Vance's Chief Equity Investment Officer, provides his thoughts on tax-efficient mutual funds and tax-advantaged investment strategies.
Insights
The President’s Fiscal Blueprint for a Second Term and The Timing of Tax Changes
Legislative Update, Andrew Friedman, Principal, The Washington Update; February 2012
Earlier this week President Obama released his annual budget plan for the federal government. In doing so, the President formally abandoned his promise, made in 2009, to cut the budget deficit in half by the end of his first term. This year’s plan calls for a federal deficit in 2012 of $1.33 trillion, higher than last year’s $1.3 trillion and close to the 2009 all-time high of $1.4 trillion.
Investing in a Rising Tax Environment 2012
Andrew Friedman , Principal, The Washington Update, January 2012
The Bush tax cuts–the lower tax rates in effect for the past decade–are scheduled to expire at the end of 2012. Republicans believe the tax cuts should be extended for all taxpayers. Democrats believe they should be extended only for the middle and lower classes.
Combining Trusts, Life Insurance and Annuities: A unique opportunity to transfer wealth without tax
White Paper, Andrew Friedman , Principal, The Washington Update, December 2011
Near the end of 2010, President Obama reached a compromise with Republican Congressional leaders to extend through 2012 the lower income tax rates enacted during the Bush administration that were slated to expire at year-end 2010. The compromise similarly provides for a $5 million estate tax exemption and a 35% estate tax rate through 2012.
The “Super Committee” Fails: What Happens Now?
Legislative Update, Andrew H. Friedman, November 2011
Last week, the “Super Committee” tasked with determining how to reduce the federal budget deficit by $1.2 trillion announced that it had failed to agree on a plan before its November 23 deadline. The Committee’s failure triggers a process called “sequestration,” under which automatic spending cuts of $1.2 trillion are implemented over ten years beginning in 2013. The sequestration cuts are to be split evenly between defense and non-defense programs. When added to cuts already agreed upon in August, total cuts in defense spending will approach $1 trillion.
Whither the Deficit “Super Committee”?
Legislative Update, Andrew H. Friedman, November 2011
The Congressional “Super Committee” established by last summer’s debt ceiling deal has less than a month remaining to propose a plan to reduce the nation’s deficit. As hope for a “grand bargain” fades, the country is facing the prospect of severe cuts in defense spending, a possible government shutdown, continued high unemployment and higher taxes.
Lower deficits or more jobs?
Legislative Update, Andrew H. Friedman, September 2011
Last week, before a joint session of Congress, the President laid out a new $450 billion program to generate jobs and reduce unemployment. Much of the President’s proposal follows the contours of his 2009 stimulus package, calling for additional spending on infrastructure, state aid, and expanded unemployment benefits. But over half of the cost would come from tax reductions, lowering the 2012 Social Security tax rate for both employers and employees to 3.1% (the 2011 rate for employees is 4.2% and the normal rate for both is 6.2%).
Investment Opportunities and The High Federal Budget Deficit
White Paper, Andrew H. Friedman, April 2011
The federal budget deficit is projected to reach a new high in 2011, exceeding even the record deficits of recent years. The high deficit may portend ominous consequences for the economy and the government’s ability to continue to function in its present state. But it also provides opportunities for investors. This white paper describes the extent to which Washington is likely to address the federal budget deficit and how investors can potentially profit from – or at least blunt the negative effects of–the current fiscal situation.
Preparing for a Secure Retirement: The 401(k) Plan Rollover
White Paper, Andrew H. Friedman, March 2011
It has been a difficult time for retirement savings. Investors relying on their 401(k) and IRA assets to sustain them in retirement have run headlong into the recession and a precipitous decline in asset values. In 2008, 401(k)s and IRAs lost over two trillion dollars in value. Although asset values have risen since then, most have not returned to their previous highs. At the same time, high federal budget deficits are threatening the long-term viability of the Social Security system. Many investors are concluding they will be unable to retire as early as they hoped, or with the same post-career lifestyle.
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