3. Keep an eye on capital gains distributions
As we all know, mutual funds are a must in terms of getting their shareholders their gains made in one year from stock and bond sales. However, if the fund you own is actually in a taxable account when you file your last year’s tax return, you’ll have to pay taxes on those distributions.
If a distribution appears on the horizon, take a closer look at mutual funds, bonds, and stocks in order to determine if they are worth keeping or not. If they aren’t, you should sell them as soon as possible, namely by the end of 2020.
Note that capital gains distributions are usually published in December, if not November.
