An investment portfolio that includes both stocks and bonds is a great way to diversify the many risks in the financial markets today. Bonds are typically considered the safe counterbalance in portfolios, but long-term interest rates on bonds have risen in a short period of time, creating individual bond security losses within portfolios. A great tax strategy is to translate unrealized bond losses into tax losses. This is the hidden value in bonds this year.
The tax planning experts at Key Private Bank share their thoughts on the hidden value of bonds as a 2013 tax management strategy.