Year End Capital Gains Distributions

Every December, Capital Gains Distributions are announced for mutual funds and index funds.  This happens whether the market is up or down.  In a strong market, investors may be more prepared to be hit with a tax bill.  But in a market like we've seen in 2022, this may be more of a shock to the system.  Today, Amy Walls from Thimbleberry Financial breaks it all down.First, Amy explains the difference between a mutual fund and an index fund, with a clever fruit salad analogy.Next, we walk through the differences between capital gains and capital losses, as well as short-term vs. long-term.  Investors don't control the trading inside a fund, so they have no control over what's a capital gain inside it.We close with a business analogy to better explain the situation.If you have questions about anything related to your financial future, reach out to Amy Walls and the team at Thimbleberry Financial at https://thimbleberryfinancial.com/Or give them a call at 503-610-6510