What's happened
As the year-end approaches, institutional investors are ramping up selling activities, primarily for tax-loss harvesting. This strategy allows investors to offset capital gains taxes by selling underperforming assets. Experts also highlight the growing use of ING trusts for tax savings, particularly among business owners.
Why it matters
What the papers say
According to Business Insider UK, institutional investors are engaging in tax-loss harvesting, with Bank of America noting an 80% increase in selling activity this October compared to historical averages. Jere Doyle from BNY Wealth emphasizes that this strategy allows investors to offset gains with losses, particularly in a volatile market. Meanwhile, Hayley Cuccinello highlights the rising popularity of ING trusts among business owners, which can shield assets from state taxes. Dan Griffith of Huntington Bank notes that these trusts are becoming essential as baby-boomer entrepreneurs look to transition their businesses. The Scotsman discusses the importance of strategic planning for wealth transfer, emphasizing the need for families to prepare heirs for managing inherited wealth.
How we got here
Institutional selling typically increases towards year-end, driven by strategies like tax-loss harvesting. This year, Bank of America reported an 80% rise in selling activity compared to historical averages, reflecting heightened market volatility and tax planning efforts.
Common question
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What are the best strategies for wealth transfer in 2024?
As families prepare for the future, understanding effective wealth transfer strategies is crucial. With the rise of tax-loss harvesting and innovative trust structures like ING trusts, it's essential to explore how these methods can protect and grow your assets. Below, we answer common questions about wealth transfer and estate planning to help you make informed decisions.
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The Bank of America Corporation is an American multinational investment bank and financial services company headquartered in Charlotte, with central hubs in New York City, London, Hong Kong, Dallas, and Toronto.