The vote is in, FIFO is out. This is a victory for investors. First-in, first-out accounting would have caused capital gains taxes to go up and would have led to more assets stuck in concentrated portfolios, instead of being appropriately diversified.
But stay tuned! We are analyzing the impact of the new tax law on investors and will provide insights on what to watch out for. With the sweeping changes to the tax code, the IRS and Treasury department will be reinterpreting the law and setting new guidance and regulations.
Paying attention to details will be more important than ever. Parametric is striving to bring clarity to complex tax matters and help financial advisors focus on what matters to their clients.
Paul Bouchey, CFA - Chief Investment Officer
Mr. Bouchey leads Parametric’s investment, research and strategy activities. His research interests include indexing, tax management, factors, and rebalancing. Paul earned a B.A. in mathematics and physics from Whitman College and an M.S. in Computational Finance and Risk Management from the University of Washington. He holds the Chartered Financial Analyst designation.
The views expressed in these posts are those of the authors and are current only through the date stated. These views are subject to change at any time based upon market or other conditions, and Parametric and its affiliates disclaim any responsibility to update such views. These views may not be relied upon as investment advice and, because investment decisions for Parametric are based on many factors, may not be relied upon as an indication of trading intent on behalf of any Parametric strategy. The discussion herein is general in nature and is provided for informational purposes only. There is no guarantee as to its accuracy or completeness. Past performance is no guarantee of future results. All investments are subject to the risk of loss.