Portfolio rebalancing is a long-held approach to investing. Done wisely, it can ensure holdings align with your investment strategy. However, thoughtless actions can have inadvertent consequences come tax time. Ask yourself these four questions before rebalancing to avoid a nasty tax surprise. Which Type of Account Am I Rebalancing In? IRAs have various benefits for Americans. One key perk is that transactions within an IRA are tax-sheltered. Gains or dividends don’t create taxable consequences. That’s ...

Core Insights - The approval of spot bitcoin ETFs in early 2024 led to a significant influx of capital, with billions of dollars invested, marking a pivotal moment for traditional investors in the cryptocurrency space [1] - However, the tradeoffs associated with ETFs have become apparent, particularly regarding tax implications, as they have removed certain tax advantages that direct ownership of bitcoin retains [2][3] Tax Implications - The "wash sale rule loophole" remains a critical differentiator between spot ETFs and direct bitcoin ownership, as cryptocurrencies are classified as property, allowing for more favorable tax treatment [4][5] - Direct ownership allows investors to harvest losses during market volatility without the restrictions imposed by ETFs, enabling immediate repurchase of the asset to maintain exposure [5][6] Investment Strategy - Advisors face a nuanced decision-making process regarding the suitability of spot ETFs versus direct ownership, focusing on tax management and risk mitigation rather than a simple choice between ease and difficulty [3][7] - Clients who invested in spot ETFs may find themselves lacking the flexibility to manage tax losses effectively, as ETFs are subject to the 30-day wash sale rule, which limits their ability to capitalize on market fluctuations [6][7] Advisor Perspectives - Some advisors, like Jirayr Kembikian from Citrine Capital, advocate for direct bitcoin ownership as the superior method, acknowledging that while spot ETFs provide an easy entry point, they sacrifice control and tax-loss harvesting opportunities [8]

Group 1 - Bitcoin has broken the psychological barrier of $90,000, trading at $90,742 with a 3.2% increase, marking a reversal from the selling pressure observed during U.S. trading hours in Q4 2025 [1] - The end of tax-loss harvesting, which had driven Bitcoin down by 23% in Q4, is reflected in the recent price action [1] - Buying volume increased significantly at 09:30 ET, contrasting with the previous sell-off pattern, and futures open interest rose by 2.16% to $130 billion, indicating renewed appetite for leverage [2] Group 2 - MicroStrategy is believed to have established a local price floor by purchasing 1,229 BTC at an average price of $88,568, which helped defend the price range ahead of the New Year [3] - Miners, such as Hut 8, are outperforming the spot market, with Hut 8's stock rallying nearly 15% to $50.73 [3] - The crypto market is starting 2026 positively, driven by renewed institutional interest, clearer regulations, and faster ETF approvals, which have boosted confidence, particularly in Bitcoin and Ethereum [4] Group 3 - Prediction markets remain cautious despite the recent rally, with only 26% odds assigned to Bitcoin exceeding $150,000 in 2026, indicating a preference for a consolidation year [5] - Immediate resistance for Bitcoin is identified at the Q4 2025 breakdown level of $92,500 [5] - The recent price action suggests that the "tax drag" is no longer a factor, and if U.S. institutions are indeed risk-on, a rotation into high-beta altcoins and miner equities is expected to outpace spot Bitcoin in the short term [6]

Core Insights - Bitcoin and Ethereum ETFs experienced their first day of net inflows in weeks, breaking a streak of outflows just before year-end [1][7] - Bitcoin ETFs recorded a net inflow of $354.8 million, while Ethereum ETFs saw $67.8 million in net inflows, ending a period of significant withdrawals [2][3] - The reversal in inflows is attributed to increased buying interest, possibly from bargain hunters or expectations of a "January effect" [4] Inflow and Outflow Trends - Prior to the inflows, Bitcoin ETFs lost $751 million and Ethereum ETFs lost approximately $564 million during a seven-day outflow period [3] - Total withdrawals from both Bitcoin and Ethereum between December 15 and 19 amounted to around $1.13 billion [2] - The outflows were primarily driven by institutional de-risking, poor holiday liquidity, and tax-loss harvesting strategies [3] Market Dynamics - Historical data indicates a positive correlation between ETF flows and spot prices for Bitcoin and Ethereum, with a correlation coefficient of approximately 0.79 for Ethereum [5] - Unexpected ETF flows have been linked to prolonged price increases for Bitcoin, typically peaking 3-4 days after inflows [6] - The introduction of spot Bitcoin ETFs in early 2024 is expected to positively impact returns and volatility for Bitcoin, Ethereum, and other cryptocurrencies [8]

Core Insights - REIT investment has significantly declined since the Federal Reserve began raising interest rates in March 2022, leading to a lack of investor interest in real estate [1][2] - The average REIT's Price to FFO (Funds From Operations) multiple has dropped from 20.7x in December 2021 to 13.7x in December 2025, with a corresponding increase in the discount to Net Asset Value (NAV) from 6.98% to 14.84% [2][3] REIT Market Dynamics - The current unpopularity of real estate investment is characterized by multiple compression and increased discounting, indicating potential opportunities for further analysis beyond average metrics [3] - Various operational issues have contributed to the decline in share prices for many REITs, with specific companies facing multiple challenges [4] Company-Specific Analysis - **Armada Hoffler (AHH)**: Shares are trading at approximately $6.58, representing about 52% of a $12.57 consensus NAV estimate. Analysts project a 2026 FFO/share of $1.08, suggesting a potential price range of $10.70 to $14.80 if it aligns with average REIT multiples [10] - **Easterly Government Properties (DEA)**: Currently priced at $21.20, which is 65% of the consensus NAV of $32.42/share. The FFO multiple stands at 6.86x, with potential pricing ranging from $27.60 to $42.33 if market multiples are achieved [13] - **Global Medical REIT (GMRE)**: Shares are trading at $33.40, about two-thirds of the $51.11 consensus NAV. The FFO estimate is $4.08/share, with potential pricing between $43.44 and $55.90 if it reaches average market multiples [15] Investment Opportunities - The current market presents extreme discounts on REITs, driven by a multi-year trend of stock market gains and the hype surrounding Artificial Intelligence, which has overshadowed real estate investments [17] - Increased interest from private equity firms in acquiring discounted REIT portfolios indicates a growing recognition of potential value in the sector [19]

Core Insights - Bitcoin remains range-bound with support at $85,000 and resistance at $93,000, marking its weakest year-end performance in seven years as liquidity thins and traders adopt a cautious stance [2][4] - A significant expiration of Bitcoin options is anticipated, with approximately 300,000 contracts worth $23.7 billion set to expire, representing over 50% of Deribit's total open interest [2][3] - Year-end tax-loss harvesting may increase short-term volatility in the crypto market, as investors can realize losses and re-establish positions without restrictions [4] Market Dynamics - Bitcoin's perpetual open interest has decreased by $3 billion, while Ethereum's has dropped by $2 billion, indicating reduced leverage and potential for sharp market movements [1] - Open interest in $85,000 puts has decreased from 15,000 to around 12,000 contracts, while $100,000 calls remain stable at approximately 17,000 contracts, suggesting some optimism for a potential rally [3] - On-chain data indicates weakening buying pressure, with a decline in active addresses and buy-volume divergence in Binance futures markets, reminiscent of the 2021 cycle structure [5][6] ETF and Investment Trends - Bitcoin ETFs have experienced significant outflows totaling $461.8 million over three days, with BlackRock and Fidelity leading the withdrawals, reflecting growing risk-off sentiment as the year ends [6]

Group 1 - The article discusses the importance of refreshing bond portfolios, especially in the context of tax-loss harvesting as the year ends, providing an opportunity for investors to reinvest in bonds [2] - The Federal Reserve is facing uncertainty regarding interest rates and inflation, which impacts the yield curve and suggests that a bond portfolio refresh could enhance flexibility and transparency through bond ETFs [3] - The growth of the ETF landscape has expanded options for investors to create customized bond allocations, with active bond ETFs offering advantages over traditional mutual funds [4] Group 2 - The Avantis Core Fixed Income ETF (AVIG) is highlighted as a strong option for bond portfolios, charging only 15 basis points and investing in a diverse range of debt instruments [5]

Core Insights - The article discusses various strategies for managing capital gains taxes during retirement, particularly for individuals with significant investment portfolios and assets [2][4][10]. Tax Implications and Strategies - A step-up in basis allows heirs to inherit assets without the tax burden of capital gains accrued during the original owner's lifetime, applicable in community-property states [1][6]. - The long-term capital gains cap for 2025 is set at $533,401 for single filers and $600,051 for married couples filing jointly, with a net investment income tax applicable for incomes exceeding $250,000 for married couples [3][11]. - Tax-loss harvesting is recommended as a strategy to offset gains by selling stocks with unrealized losses [6]. Gifting and Charitable Contributions - Donating appreciated stock to charity can eliminate capital gains taxes and provide a tax deduction, with suggestions to pre-fund charitable giving through donor advised funds [7]. - Gifting appreciated stock to a family member in a lower tax bracket can shift the tax burden, with an annual gift-tax exclusion of $38,000 for married couples [8]. Financial Planning for Education - Establishing 529 accounts for grandchildren can help fund education and allows for tax benefits, including the application of the annual gift exclusion [9]. Retirement Financial Management - The article emphasizes the importance of consulting financial advisers for significant withdrawals and considering partial Roth conversions to optimize tax brackets [11][12]. - It highlights the financial security of being debt-free and having sufficient investments to enjoy retirement while planning for a financial legacy [10][12].

Core Insights - A significant portion of U.S. crypto investors are unaware of their tax obligations related to digital assets, with only 25% currently tax compliant according to IRS metrics [1][2] - The introduction of new reporting rules, including the issuance of 1099 forms by crypto exchanges, is expected to increase awareness of tax compliance among investors [2][3] Group 1: Awareness and Compliance - Most crypto investors do not realize they need to file taxes on their digital asset activities, indicating a major awareness issue [2] - The IRS will require brokers to issue 1099 forms starting next year, which is anticipated to raise compliance awareness from 25% to nearly 100% [3] Group 2: Tax Implications - Tax liabilities can arise from various activities, including capital gains from selling assets and taxable events from swapping cryptocurrencies [4] - For example, transferring Bitcoin to Ethereum is considered a taxable event, which complicates tax reporting for active investors [4] Group 3: Strategic Tax Management - Investors are encouraged to utilize software solutions to manage their tax liabilities effectively, especially given the potential volume of trades [5] - Tax strategies such as tax-loss harvesting can provide advantages for frequent traders, allowing for more informed trading decisions [6]

Core Points - The One Big Beautiful Bill Act introduces significant tax changes for Americans, with many provisions effective in 2026 and some in 2025, prompting financial experts to advise proactive measures to enhance financial positions [1] Group 1: Charitable Giving - Taxpayers who itemize will lose deductions on the first 0.5% of their adjusted gross income (AGI) given to charity starting in 2026, which is a critical change [2] - For example, with an AGI of $100,000, the first $500 donated will not be deductible, and at $200,000 AGI, the first $1,000 will not provide any tax benefit [2] - Financial advisors recommend bundling multiple years of charitable donations into 2025 through a donor-advised fund (DAF) to maximize deductions and avoid capital gains taxes on appreciated securities [3] - Non-itemizers will receive a new above-the-line deduction of $1,000 for individuals and $2,000 for married couples filing jointly, applicable only to public charities [4] Group 2: Tax-Loss Harvesting - The tax law did not change capital gains treatment, allowing tax-loss harvesting strategies to remain effective [5] - By selling losing investments by December 31, taxpayers can offset gains and up to $3,000 of ordinary income [5] - Investors must be cautious of the wash-sale rule, which disallows losses if substantially identical stocks or securities are repurchased within 30 days before or after the sale [5]