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Wealth Management
Opportunities in Uncertain Times
A depressed stock market holds profits for investors who can overcome their fears.
Don’t be fearful of making portfolio changes because of taxes.
Adam E. Carlin
Bermont/Carlin Group with Smith Barney
Director, wealth management, Coral Gables
Assets under management: $1.6 billion
Minimum investment: $2 million
What he likes: Municipal bonds, but purchased carefully. In Florida, where there is no state income tax, a 4.5% muni bond is the equivalent of a 6.92% taxable yield for someone in the 35% tax bracket, Carlin says. He also likes master limited partnerships, which are typically in the energy field with some in the entertainment industry, because only 25% to 30% of distributions are taxable.
What he doesn’t like: Mutual funds in taxable accounts because of capital gains distributions. Carlin also warns about buying funds close to the distribution date at the end of the year.
