Mutual Fund Buzz: The Tax Man Eyes The Fund Manager
Kirk Shinkle
It could be a rough one for some fund manager paychecks. That's because the
Their income tax hit would rise to 35 percent on "carried-interest" income, which gets taxed at a more friendly capital-gains-like rate of 15 percent. The rate on partnership income, a tax that would hit the sale of a variety of financial firms specifically, would rise to 30 percent in 2011 and 33 percent in 2013.
Take heart, managers: The current language is softer than the House bill, and there's still a few days left to lobby. But don't
expect a surge of sympathy. That higher tax rate only brings the rate on managers' profit sharing to the same level everyone else
pays on ordinary income (for a solid take on why closing the gap is a good thing, see
On the other side of the ledger, the bill, sponsored by Rep. Sander Levin (D-Mich.) and
Reuters: Senate Jobs Bill Would Hike Fund Manager Tax
May's worst-performing stock funds faltered in the face of the European debt crisis and the "flash crash." Our story, "The Biggest Losers: Mutual Funds That Fell Flat in May," highlights funds that stumbled badly under the macro malaise:
-- Birmiwal Oasis Fund (BIRMX). May loss: 17.2 percent
-- YieldQuest Core Equity Fund (YCEIX). May loss: 13.4 percent
-- Alpine Dynamic Dividend (ADVDX). May loss: 12.5 percent
-- Catalyst Value (CTVAX). May loss: 12.2 percent
-- Counterpoint Select (CPFSX). May loss: 12.2 percent
Looking for a safer fund after that rough May (and, apparently, a worse June)? See our list of highly rated conservative allocation funds to help you ease back into stocks:
-- Vanguard Wellesley Income (VWINX)
-- Permanent Portfolio (PRPFX)
-- Berwyn Income (BERIX)
-- Manning & Napier Pro-Blend Conservative Term (EXDAX)
-- AARP Conservative Fund (AACNX)
Available at Amazon.com:
- Chinese Growth Expected to Boost Asian Markets Long-Term
- 3 Mutual Funds to Steer Clear Of
- Mutual Fund Buzz: Alternatives On The Rise?
- Mutual Fund Buzz: The Tax Man Eyes The Fund Manager
- Mutual Fund Buzz: Bond Bubble?
- Ease Back Into Stocks With These Mutual Funds
- Value and Growth: Why Investors Need Both
- Investing Your Social Security Check? Consider These Factors
- New Efficiencies Should Help Alcoa as Recession Lifts
- Mutual Fund Fees: How Much is Too Much to Pay
- In Gold's Shadow: How Other Metals Fit Into Portfolios
- Should Investors Sit This One Out?
- There's No 'Perfect Time' to Dive Into Investing
- How to Keep Your Cool in a Turbulent Market
- How to Repair Your Damaged Portfolio
- Keep Bond Portfolio Broadly Diversified
- Why Not All Target-Date Funds Are Created Equal
- Five Tips to Avoid Confirmation Bias
- Financial Reform Legislation Gives Shareholders More Say
- Fiduciary Provision May Be Most Important Part of Financial Reform Bill
- What Gold Can and Cannot Do For You
- Why Your Portfolio Needs More Risk
- Read Mutual Fund Ads Critically
- Keep the Right Bonds in Your Portfolio
- European Debt Crisis Affects Investments
- 7 Valuable Lessons For Investors
- The Reality of Mutual Fund Returns
- Mutual Funds and a Changing Landscape
- Assembling a Sturdy Retirement Portfolio
- Funds for Recent College Grads
- Many 'Wide Moat' Companies Losing Competitive Advantage
- Who Got Hit Worst in the Market Crash
- Utility Stocks: Trade Flash for Dependable Payouts
- Formulate Strategy Before Diving Into Higher Risk Mutual Funds
- Contrarian Investors Target Promising Out-of-Favor Stocks
- Income Investors Face Challenges as Economy Shifts
- Can SEC Beat Goldman Sachs?
- Business Schools' Great Ethics Debate
- Investing for Retirement A Balancing Act
- Fees Can Take Big Bite Out of Retirement Fund Contributions
- Small-Cap Stocks Poised For Big Comeback
- John C. Bogle's Old-fashioned Investing Advice Still Applies
- 10 Great Mutual Funds You've Never Heard of
- Mutual Funds Fees & Expenses Only One Factor
- Why Investors Are Flocking to Index Funds
- Trend Setting Companies Target Hip Young Consumers
- Weakening European Stocks Offer Some Bargains for U.S. Investors
- Investing: What to Do About Inflation and What Not to Do
- Kick-Start a Portfolio With Just a Little Cash
- Exchange Traded Funds Offer Low-Cost Diversification
- Fresh Look at Socially Responsible Mutual Funds
- Technology Opens Doors for Investors
- Make the Most of Your Mutual Fund Money
- Fiduciary Standard for Giving Investment Advice
- 'Investment Rewards' Credit Cards Well Worth A Look
Investing - Mutual Fund Buzz: The Tax Man Eyes The Fund Manager | Successful Investing
(c) 2010 U.S. News & World Report