A TAXing Matter!
Since this is the time of the year when most of us are faced with the task of doing our taxes, it is therefore appropriate to remind you of things you ought to be aware of if you use some form of tax-deferred retirement account in your investment activities.
You need to give serious thought to which investments belong in your tax-deferred account and which belong in your taxable account. For instance, tax-exempt bonds can be held in a taxable account, whereas most of your stocks would be better served by being held in your tax-deferred retirement plan. However, a retirement plan might be wasted on stocks and stock funds if you are a buy-and-hold type investor because at today's low-dividend rates, a non-traded stock portfolio won't generate much in the way of income tax each year. And, you'll also lose the generous 15% rate on long-term gains by holding stocks in a tax-deferred account.
Another important point to remember is that by holding your stocks in a taxable account, this will allow you to take tax losses, when available, and eventually cash in your winners at long-term capital gains rates.
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You may not be aware of the fact that due to recent legislation passed by our Congress, you are now able to get once each year, a copy of your credit report from the three main credit rating agencies, and this is FREE to you, but only once each year. I have added the "Link" for this web site and you can access it by going to "Annual Credit Report" in our Links section.
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Identity Theft is a national problem and it seems to be on the rise. I have personally been on the receiving end of some rascal's "Phishing Expedition" - and this has happened any number of times - but fortunately I was alert and therefore did not succumb to the ruse each time it was received.
And in an effort to help you to sharpen your own wits and be more alert to any requests for personal information, I have also added a new web site called "ID SAFETY" which you will find among our "Links."
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You need to give serious thought to which investments belong in your tax-deferred account and which belong in your taxable account. For instance, tax-exempt bonds can be held in a taxable account, whereas most of your stocks would be better served by being held in your tax-deferred retirement plan. However, a retirement plan might be wasted on stocks and stock funds if you are a buy-and-hold type investor because at today's low-dividend rates, a non-traded stock portfolio won't generate much in the way of income tax each year. And, you'll also lose the generous 15% rate on long-term gains by holding stocks in a tax-deferred account.
Another important point to remember is that by holding your stocks in a taxable account, this will allow you to take tax losses, when available, and eventually cash in your winners at long-term capital gains rates.
-------------------------------------------------
You may not be aware of the fact that due to recent legislation passed by our Congress, you are now able to get once each year, a copy of your credit report from the three main credit rating agencies, and this is FREE to you, but only once each year. I have added the "Link" for this web site and you can access it by going to "Annual Credit Report" in our Links section.
-------------------------------------------------
Identity Theft is a national problem and it seems to be on the rise. I have personally been on the receiving end of some rascal's "Phishing Expedition" - and this has happened any number of times - but fortunately I was alert and therefore did not succumb to the ruse each time it was received.
And in an effort to help you to sharpen your own wits and be more alert to any requests for personal information, I have also added a new web site called "ID SAFETY" which you will find among our "Links."
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posted by Bob Moser at
3:54 PM
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