Investment Updates
Seven Ways To Slow The 'Tax Drag' On Investments
Published Wednesday, January 18, 2017 at: 7:00 AM EST
It's not how much you earn that counts; it's how much you keep. Yet for many investors, a combination of taxes can siphon off close to half of their investment earnings. Some of what you earn from your investments may be taxed at ordinary income rates up to 39.6% on the federal level, plus you could be hit with a 3.8% tax on "net investment income" (NII) as well as state and local income taxes.
What can you do? Consider these seven approaches:
1. Know the benefits in the law. Congress has had more than 100 years to tinker with the tax code, which now is full of provisions designed to protect and enhance the interests of investors. The complete list, too long to enumerate here, includes tax breaks for investments in real estate, employer-based retirement accounts and IRAs, and life insurance, as well as others such as oil and gas partnerships.
© 2024 Advisor Products Inc. All Rights Reserved.
More articles
- Roth IRA Conversions: The Time May Be Right
- 5 Steps To Realize An Early Retirement Dream
- 7 Financial Steps Forward In A Second Marriage
- Weigh Five 401(k) Options When You Leave A Job
- Seven Key Components Of Trump's Tax Reform Plan
- Dynasty Trusts: The Gift That Just Keeps On Giving
- Five Tax-Smart Ways To Transfer Your Wealth
- 7 Top Tax Incentives That Entice Investors
- How To Improve Chances For College Financial Aid
- Ten Frequent Retirement Mistakes You Should Avoid
- Meeting With The Family For Elder Care Planning
- 20 Questions On Required Minimum Distributions
- Seven Good Reasons To Create And Fund A Trust
- 6 Common Medicare Myths That Should Be Dispelled
- How To Save For Your Retirement At Every Age