I am trying to understand an investment scheme my mother-in-law is involved in that was recommended by her advisor. Her funds are invested in several mutual funds. Each month some of the units are sold in order to generate a monthly cash payment. The payments are apparently considered to be tax efficient because they mainly represent return of capital.
I'm sure this is a common strategy, but I need to understand the tax consequences in the future. I'm happy to do the research, but I'm not sure what this type of plan is called.
Can anyone give me a term to Google?
Thanks,
Russ
I'm sure this is a common strategy, but I need to understand the tax consequences in the future. I'm happy to do the research, but I'm not sure what this type of plan is called.
Can anyone give me a term to Google?
Thanks,
Russ