{"id":47,"date":"2017-02-10T20:21:45","date_gmt":"2017-02-10T20:21:45","guid":{"rendered":"http:\/\/www.weissthompson.com\/blog\/?p=47"},"modified":"2017-02-10T20:21:45","modified_gmt":"2017-02-10T20:21:45","slug":"want-to-make-more-money-investing-try-maximizing-your-after-tax-return","status":"publish","type":"post","link":"https:\/\/www.weissthompson.com\/blog\/index.php\/2017\/02\/10\/want-to-make-more-money-investing-try-maximizing-your-after-tax-return\/","title":{"rendered":"Want To Make More Money Investing? Try Maximizing Your After-Tax Return"},"content":{"rendered":"

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Benjamin Franklin famously said, ‘A Penny Saved is a Penny Earned’ and I couldn\u2019t agree more. Investors are always looking for ways to grow their account balances and reducing their tax bill might be the simplest way. Here are a few ways to get more out of your investments by paying less in taxes:<\/p>\n

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    1. Long-Term Capital Gains<\/strong> \u2013 Hold investments a year or longer and gains are given favorable tax treatment over short-term gains (less than 1 year) which are taxed as ordinary income.<\/li>\n
    2. Qualified Dividends<\/strong> \u2013 Many investors like to hold dividend paying stocks or mutual funds, but pay close attention to what type of income your investment generates.\u00a0 Qualified dividends are taxed at a lower rate than ordinary dividends.\u00a0 For example, many REITs and partnerships pay ordinary dividends which are taxed at your marginal (highest) tax bracket.<\/li>\n
    3. Asset Location<\/strong> \u2013 Consider buying high dividend\/high yield investments in a retirement account where the tax is deferred each year.\u00a0 On the other hand, be very careful what you buy in non-retirement accounts because the interest, dividends and capital gains can make their way onto your tax return.<\/li>\n
    4. Municipal Bonds<\/strong> \u2013 Consider investing in bonds that pay tax-free interest.<\/li>\n
    5. Index Funds and\/or Exchange Traded Funds (ETFs)<\/strong> \u2013 Many index funds and ETFs have low turnover.\u00a0 As a result they typically don’t pass on as many capital gains distributions to shareholders as actively managed mutual funds.<\/li>\n
    6. Look Ahead at Your Income for Tax Bracket Changes<\/strong> \u2013 Low income years may be good for intentionally taking on more income (would you pay 15% now to avoid a 25% tax later?) and high income years should be planned around by taking losses, deductions or deferring income to other years.<\/li>\n
    7. Use Roth IRAs<\/strong> \u2013 You don\u2019t get a tax deduction on the small amounts going into these accounts, but typically, whatever large amounts they may grow to can be withdrawn tax-free.<\/li>\n<\/ol>\n<\/ol>\n
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      Learn to pay attention to what you will pay in taxes so you can keep more of what you earn!<\/p>\n","protected":false},"excerpt":{"rendered":"

      Benjamin Franklin famously said, ‘A Penny Saved is a Penny Earned’ and I couldn\u2019t agree more. Investors are always looking for ways to grow their account balances and reducing their tax bill might be the simplest way. Here are a few ways to get more out of your investments by paying less in taxes: Long-Term … <\/p>\n

      Continue reading “Want To Make More Money Investing? Try Maximizing Your After-Tax Return”<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-47","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/www.weissthompson.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/47","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.weissthompson.com\/blog\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.weissthompson.com\/blog\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.weissthompson.com\/blog\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.weissthompson.com\/blog\/index.php\/wp-json\/wp\/v2\/comments?post=47"}],"version-history":[{"count":1,"href":"https:\/\/www.weissthompson.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/47\/revisions"}],"predecessor-version":[{"id":49,"href":"https:\/\/www.weissthompson.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/47\/revisions\/49"}],"wp:attachment":[{"href":"https:\/\/www.weissthompson.com\/blog\/index.php\/wp-json\/wp\/v2\/media?parent=47"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.weissthompson.com\/blog\/index.php\/wp-json\/wp\/v2\/categories?post=47"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.weissthompson.com\/blog\/index.php\/wp-json\/wp\/v2\/tags?post=47"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}