Читать книгу Personal Finance After 50 For Dummies - Eric Tyson - Страница 88

When researching investments, you need to be clear about the possible tax consequences you face with the different investments you may make. Apart from investments in tax-sheltered retirement accounts, the interest or dividends produced by investments are generally taxable in the year they’re earned. The profits (known as capital gains) from selling an investment at a higher price than it was purchased for also are taxable.

If you invest without paying attention to taxes, you’ll likely overlook ways to maximize your returns. Two simple yet powerful moves can help you to invest in a tax-wise way:

 Contribute to your retirement accounts so that less of your money is taxed in the first place. Doing so reduces your taxes both in the years you make your contributions as well as each year your money is invested. For those approaching retirement with significant balances already saved in their retirement accounts, saving outside retirement accounts is worth evaluating. Consult Chapter 5 for more information on retirement accounts.

 With money that you invest outside retirement accounts, choose investments that match your tax situation. If you’re in a high tax bracket, you should avoid investments that produce significant highly taxed distributions. For example, you should avoid taxable bonds, certificates of deposit and other investments that pay taxable interest income, and those that tend to distribute short-term capital gains (which are taxed at the same high tax rates as ordinary income). Instead, consider growth-oriented investments, such as stocks, real estate, or investments in small business — yours or someone else’s. Long-term capital gains, which are gains from investments sold after a holding period of more than one year, are taxed at lower rates. Keep in mind that growth-oriented investments generally carry more risk.If you’re in a high tax bracket and would like to invest in bonds outside a retirement account, consider municipal bonds that pay federally tax-free interest. The interest on municipal bonds is also free of state taxes if the bond was issued in the state in which you live.