A roundup of investment ideas for active investors
Ask Globe Investor: I’m in my 30s and I own about $300,000 worth of Shopify Inc. shares, which I received as part of my compensation before I left the company in 2019. The shares have an unrealized capital gain of $210,000 and account for nearly 30 per cent of my portfolio, which is worth slightly more than $1-million.
First, having 30 per cent of your portfolio in a single stock is better than 50 per cent, but it’s still way too high for proper diversification. As a rough rule of thumb, I aim to allocate a maximum of about 5 per cent to each individual stock, but I allow some wiggle room for companies on the conservative end of the spectrum. For example, the largest holding in my personal portfolio is Fortis Inc., with a weighting of about 7 per cent.
Third, although nobody likes paying taxes, keep in mind that capital gains qualify for a significant tax reduction relative to other sources of income. Specifically, only half of capital gains are added to your taxable income, which means – for someone in British Columbia earning $130,000 – the effective marginal tax rate on capital gains is 20.35 per cent. The effective capital gains tax rate increases in small increments as income rises, topping out at 26.
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Style File: Four colourful gifts for dadCelebrate the father figure in your life this Father\u0027s Day with a cool, colourful gift.
Read more »
Style File: Four colourful gifts for dadCelebrate the father figure in your life this Father\u0027s Day with a cool, colourful gift.
Read more »
Style File: Four colourful gifts for dadCelebrate the father figure in your life this Father\u0027s Day with a cool, colourful gift.
Read more »
Style File: Four colourful gifts for dadCelebrate the father figure in your life this Father\u0027s Day with a cool, colourful gift.
Read more »
Harrowing details emerge after four children survive 40 days in Colombian jungleThe kids are expected to remain for at least two weeks in a hospital receiving treatment after their rescue, but some are already speaking and want to do more more than lying on a bed, according to family members
Read more »
SHANNONVILLE MOTORSPORT PARK: Motorcycle racer dies in crash, four others were injuredOfficers from the Lennox and Addington County OPP detachment responded at 1:46 p.m. to the five\u002Dbike crash that took place during a sanctioned race, police said.
Read more »