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.

Continue reading “Don’t Miss Out, You’ll Regret It (Part 3)”

Don’t Miss Out, You’ll Regret It (Part 2)

Key Points

  • Solid financial plannings means taking care of any tax advantage you can.
  • However, it’s important to understand that most tax breaks have deadlines, meaning: you snooze, you lose.
  • The HSA could potentially be the best plan you never heard about.
  • This program allows you to potentially invest with pre-tax savings, and spend without taxes as well.

Continue reading “Don’t Miss Out, You’ll Regret It (Part 2)”

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)”

The World’s Most Expensive Hobby (Part 3)

Key Points

  • To invest wisely, you need to define a benchmark before you actually make any investment decisions.
  • Even if you have a benchmark in mind, an active investment philosophy brings a whole host of issues when it comes to tracking investment performance.
  • These issues ultimately obscure the true performance of active investors, which makes it very difficult to figure out if one is investing prudently or not.
  • This obscurity is what likely perpetuates an active investing philosophy; however, over time, this can lead sub-optimal investment performance for the average investor.

Continue reading “The World’s Most Expensive Hobby (Part 3)”