Don’t Miss Out, You’ll Regret It (Part 7)

Key Points

  • Housing, education, and healthcare costs continue to rise year after year.
  • The rise in these three categories of spending have outpaced other categories for many decades.
  • If this trend were to continue unabated, almost all household income will eventually end up going into these three buckets alone.
  • This path is unsustainable on many levels. Yet, for now there are government programs out there that can help soften the blow. Not ideal, but better than nothing.

Continue reading → Don’t Miss Out, You’ll Regret It (Part 7)

Careful. There’s more to think about than just your IRA.

Don’t Miss Out, You’ll Regret It (Part 6)

Key Points

  • There are many tax-advantaged investment options beyond IRAs.
  • Similar to Traditional and Roth IRAs, there’s Traditional and Roth 401ks.
  • Then there are Simple IRAs, SEP, etc.

You would be locking away over $50,000 a year in tax-advantaged accounts. But only if you take advantage of all of your options. Read on for more about these less-well-known retirement plans.

Continue reading → Careful. There’s more to think about than just your IRA.

Don’t Miss Out, You’ll Regret It (Part 5)

Key Points

  • The best way to grow wealth is to never pay any taxes.
  • The simplest way to accomplish this is to take advantage of tax-advantaged investment accounts.
  • The most common such accounts offered by the U.S. Government are the individual retirement accounts or IRAs.
  • There are two flavors. The Traditional IRA is funded with pre-tax contributions, but earnings are taxed at an individual’s marginal tax rate at retirement.
  • The Roth IRA is funded with post-tax contributions, and the earnings are not taxed at all at retirement.    Continue reading → Don’t Miss Out, You’ll Regret It (Part 5)

Why Buy-And-Hold Can Save You BIG.

Don’t Miss Out, You’ll Regret It (Part 3)

Key Points

  • By holding a profitable investment for over a year before selling, an investor has the opportunity to significantly reduce the amount of taxes that he or she will have to pay.
  • By holding an investment indefinitely, an investor can hold off on paying taxes indefinitely.
  • By deferring the payment of taxes, capital can grow exponentially faster than otherwise.

There’s a reason why buy and hold investors tend to do well over the long-term. And it’s not so much to do with picking the right assets to invest in; but rather, it has to do with how stocks are taxed, in general. Knowing the finer details of how taxes work can save you big time. Here’s how.

Continue reading → Why Buy-And-Hold Can Save You BIG.