Investors are often concerned about minimizing transaction costs that can eat into their gains, without realizing that taxes can take an even bigger bite out of returns. Tax-aware investment management offers some protection. This is an active investment approach that aims to maximize after-tax returns. It relies on careful construction of a portfolio and proactive
For anyone who participates in buying and selling stocks, making a profit is the ultimate goal. However, two main types of stock market participants—traders and investors—follow different strategies in pursuit of that goal. The most significant difference comes down to timing: investors seek to build wealth by holding a portfolio over years or even decades,
There are endless ways to invest, with vehicles and opportunities to suit different needs, time horizons, and risk tolerances. As you explore the various options available, it’s wise to consider the tax consequences of your investments. Frequent, active trading with a goal of chasing profits can bolster your income nicely—but taxes can eat into your
Investors looking for an easy way to buy a diversified portfolio used to opt for mutual funds. Today, exchange-traded funds (ETFs) are an increasingly popular option offering several benefits. Both vehicles invest shareholders’ combined money in a broad set of assets, which provides the safety of diversification without the stress of buying and selling individual
It’s a sad fact of the tax code that the more money you make, the more you owe to the tax man. That’s especially true if you’re self-employed and paying the entire 15.3% Federal Insurance Contributions Act (FICA) tax for Social Security and Medicare yourself. Investing in real estate, however, can bring in extra income
Congratulations on that big promotion! You’re financially comfortable with a nice nest egg and now you have some extra cash coming in. So, what do you do with it? Pay down your mortgage, or invest for the long term? The thought of getting rid of debt feels good and will pay off in the interest