Our weekly roundup of tax-related investment strategies and news your clients may be thinking about.
Clients in the process of adopting or planning to get started should not miss the opportunity to claim a relatively generous federal income tax credit, according to MarketWatch. Adopting one child this year entitles clients to a $13,460 tax credit and $26,920 for two. Except for the adoption of a special-needs child, the credit amount equals the lesser of a client's qualifying adoption expenses or the credit cap. -- MarketWatch
Clients don't have to wait for death to give money to charity, according to Kiplinger. Advisers can help by setting up a charitable remainder trust now and get their clients a tax deduction. Clients would retain an income from the trust and whatever principal that is left after their death would go to charities that they designate. Kiplinger
These errors come up in conversations that investors have with Russel Kinnel, director of manager research for Morningstar. Most come down to two basic types of errors, according to Kinnel. One error is to let emotions get the better of you. The second error is to not build a plan and think things through. -- Morningstar
Clients should consider municipal bond exchange traded funds if they want steady and stable returns from their portfolio, according to ETF Trends. While tax-exempt munis have lagged strong-performing Treasuries so far in 2016, that relative weakness could offer clients a compelling entry point — an opportunity to buy in at a lower valuation and capture the potential income advantage that the tax-exempt asset class has to offer. -- ETF Trends
