Rice Money Managers, Inc.

Cautions

What Will Your Risk and Reward Be?

Regulators wisely require most financial service providers to include a warning to the effect that "Past Performance does not Guarantee Future Results" on statements about their results.  Unfortunately, this is so often repeated and included with less significant fine print that it can be over looked.

Actually, truer words were never spoken!  No one knows what the return will be in the future from an asset class, a stock or a management service.  Everything you see is simply a summation of the past or a projection into the future.  The truth is no one knows what the future holds.  Even worse, assessments of future risk based on past risk are, in our view, equally a guess.

Taxes

If you are considering selling a stock with large capital gains for income tax purposes, careful pencil and paper work is a must.  The tax is a certainty, better investment results than what you have, a hope; even if the hope is realized, it can take years to get back to even. 

On the other hand, accounts with such positions are almost inevitably undiversified, which is a major challenge in their management.  In addition, there are situations where emergencies come up and only the quick will do well. 

Rice Money Managers offers a Management Service, which includes tax issues in management.

Copyright © 2002 Rice Money Managers, Inc.