Perspectives Blog

Insights on current market events and investment opportunities.

Time not timing

Columbia Management, Investment Team | November 17, 2014

30 years equals about 11,000 days. One might assume that eliminating a few of those days would have little impact on investment performance during that time. Yet, if the ten best days of the S&P 500 Index for the period 1983- 2013 are excluded, the average annual return drops from 8.40% to 5.80%. If the twenty

Strategies for business owners to reduce net investment income tax

Abram Claude, Vice President, Columbia Management Learning Center | November 12, 2014

Self-employment income may be included in an individual’s net investment income, or may raise modified adjusted gross income beyond the net investment income threshold. Business owners may be able to reduce exposure to the net investment income tax by establishing a qualified retirement plan, and characterizing a portion of business earnings as pretax contributions to

Retirement plan design for the new tax regime

Abram Claude, Vice President, Columbia Management Learning Center | November 12, 2014

Small business owners can potentially mitigate the effect of the new 3.8% net investment income tax (NIIT) by establishing or updating a retirement plan for their business. Strategic use of tax-advantaged retirement plans may prevent one from breaking through the MAGI income threshold for the NIIT strategy. The Columbia Management Learning Center is dedicating a