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Don’t Miss Out, You’ll Regret It (Part 1)

Key Points

  • Tax planning is not just about figuring out how much to pay the government, it’s also about ensuring that your investment plan is tax efficient based upon your short-term and long-term goals.
  • Investments typically generate income from three different sources: interest, dividends, and capital gains; and each source is taxed differently.
  • These differences should be taken into consideration when forming an investment plan, as federal taxes can range from 0% to upwards of 37%. Continue reading → Don’t Miss Out, You’ll Regret It (Part 1)
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Why Invest Forever? (Part 6)

Key Points

  • Assuming a 7.2% annualized real return (including reinvested dividends), an investment will double in value about every 10 years following the rule of 72.
  • Given this rate of return, $1 can grow to $1000 after 100 years and $1 million after 200 years.
  • After enough gains in capital, incremental income can be consumed on a go-forward basis (practically indefinitely), without eroding the capital base (note: restrictions apply).

Continue reading → Why Invest Forever? (Part 6)