The tax and cost efficiency improvements summarized below could result in 43% higher net investment income over a typical 30-year retirement timeframe. On a $100,000 opening balance this could result in $229,000 more net investment income over 30 years. Taxes – Stock investing in taxable accounts generates dividend and capital gains income taxes. However, tax efficient stock investing …
How does this work?: Create a 529 college savings plan account (New York has an excellent program) and set your child as the beneficiary. You can make a lump-sum contribution of up to five times the annual gift tax exclusion (5 times $15,000 is $75,000 in 2021), elect to spread the gift evenly over five …
CAN YOU LEGALLY AVOID ESTATE AND INCOME TAXES? YES, WITH THE ASSETS IN A LEGACY 529 PLAN Read More »
TO DO’S: Create a new non-deductible traditional IRA account and in January 2022, contribute $7,000 attributed to the 2021 tax year and $7,000 to 2022. Leave in cash. Convert this IRA to a Roth IRA as soon as practical thereafter (likely within a couple of weeks of funding). Since you just contributed it, there will be …
CAN YOU TURN A $14,000 INVESTMENT INTO $73,000 OF TAX SAVINGS? MAYBE, HERE’S HOW: Read More »
Warren Buffett, generally considered one of the world’s best investors earned his billions by (1) generating high investment returns and (2) taking very easy steps all of us can readily copy to compound investment gains into substantially higher wealth. Here they are: Do not pay any extra taxes – his company Berkshire Hathaway does not …
The Easily Copied Secrets to Warren Buffet’s Billions Read More »
An equity buy and hold strategy produces 3.1% higher expected average annual after-tax returns than a typical short-term trading strategy that earns the same pre-tax profits. Alternatively, a short-term stock trading strategy must earn 5.8% more average annual pre-tax profits to produce the same after-tax income as a long term buy and hold strategy. There …
Retirement Investors – Want more money to spend? Pay less taxes! Read More »
© 2020 Sebetic Advisors, LLC | Disclosures | Privacy Policy