Newsweek - USA (2020-05-22)

NEWSWEEK.COM 13

None of the options

for fast cash are great

but some are more

awful than others.

Sell Some Investments
if you own stocks, bonds or mutual
funds in a regular taxable account,
apart from any savings you have in
a 401(k) or a similar company retire-
ment plan, you may be reluctant to
sell anything now when your balance
is probably a lot lower lately than just
a few months ago. That’s sound think-
ing, usually, because selling locks in
your losses, robbing you of time to
recoup. But if you need money, selling
at a loss can be a better option than
the alternatives, especially if it helps
you avoid going deeply into debt.

Despite the market’s recent col-

lapse, there’s a good chance you will

owe capital gains taxes on any invest-

ment you’ve owned for more than a

year. The stock market rose nearly 30

percent in 2019 and is up solidly over

the past three years. Still, long-term

capital gain tax rates are lower than

ordinary income tax rates, which

is typically what you’ll pay if you

sell investments from a retirement

account. Bottom line, says San Fran-

cisco-based certified financial planner

Susan Behr: “Don’t fret about the taxes

if you need the money.”

To minimize the hit, Behr recom-

mends that you first sell any bond

investments in your account, which

have generally gained less in value

than stocks. “There’s less tax liability

from selling your fixed income assets