- What Is Cost Basis and How Is It Calculated?
The cost basis of an asset is important to you for two primary reasons: tax planning and investment planning. These two reasons are related because only with the proper investment planning can you own a tax-efficient portfolio. You need to understand cost basis in order to plan the investment horizons of the various securities in… read more…
- Tax-Deductible Investments for Your Portfolio
Incorporating tax-deductible investments into your portfolio can be a powerful strategy to enhance your overall returns. By reducing the taxable portion of your portfolio’s earnings, you can effectively keep more of your investment income working for you. These investment vehicles not only provide tax benefits, but can also align with your long-term objectives, offering a… read more…
- Understanding Tax-Advantaged Investments
When investing for the short- or long-term, where you choose to put your money matters from a tax perspective. Including tax-advantaged investments in your investment portfolio can help to minimize what you owe on the returns you earn. Tax-advantaged investments can include individual securities but it can also refer to accounts that receive favorable tax… read more…
- What Is a Tax-Deferred Investment Account?
In a tax-deferred investment account the dividends, interest and capital gains are not taxed until money is withdrawn. These kinds of investments are attractive to people whose earnings or net worth put them in a high tax bracket. They often expect they will be in a lower tax bracket when they retire. But people in… read more…
- 7 Tax-Free Investments to Consider for Your Portfolio
Investing is a powerful way to grow your savings over time. However, one of the downsides is that you generally have to pay taxes on your investment gains. And of course, the more you pay in taxes, the less of… read more…
- How a Viatical Settlement Works
A viatical settlement allows the holder of a life insurance policy to sell it for more than its purchase price, but less than its face value. If you are in the market to sell one, then you’ve likely fallen on… read more…
- What Investors Should Know About the Wash-Sale Rule
When an investment underperforms, tax-loss harvesting is a way to offset the tax impact of capital gains while maintaining your preferred asset allocation. Some robo-advisors even automate this process. The IRS allows investors to use realized losses to offset gains… read more…
- Saving for College With a Coverdell ESA: Weighing the Pros and Cons
A Coverdell ESA, formerly known as an Education IRA, is a tax-advantaged savings vehicle designed to help parents pay for the educational expenses of a child under the age of 18. It offers several benefits, but it’s not the only… read more…
- What Is the Net Investment Income Tax?
Investing has the potential to earn you great returns – but where money’s being made, you can surely find Uncle Sam nearby. Accordingly, the net investment income tax (NIIT) will take a 3.8% bite out of a portion of your… read more…
- UGMA vs. UTMA Custodial Accounts
So you’d like to set aside some money for your children. Perhaps you want to build an early inheritance or, more likely, you’d like to get a jump on their college fund. In either case, you’ll want to know more… read more…
- Donating Stock to Charity
Charitable donations often take the form of food drives, clothing donations and giving cash to a nonprofit. But did you know you could also donate stocks directly to charity? While you could always sell your stocks and donate the proceeds,… read more…
- 529 Plan Qualified Expenses: What a 529 Can Be Used For
A 529-qualified expense is a government-approved reason to take money out of a 529 college savings plan – meaning you won’t have to pay a tax penalty. While tuition is the main qualified expense you think of when you get… read more…
- 529 Plan Contribution Limits for 2025
Unlike with 401(k) plans and other retirement savings accounts, the IRS does not set annual contribution limits for 529 college savings plans. Instead, the states that sponsor individual 529 plans set parameters for the life of the plan. It’s imperative… read more…
- How Does Inheritance Work and What Should You Expect?
Inheritance is receiving assets from someone who has passed away. Many people are not prepared to pass on assets or receive them. As it turns out, the passing of property and assets doesn’t always go as expected or planned. Plus, though it may seem like a windfall, getting an inheritance is rarely as easy as… read more…
- What Wealthy Investors Do (and Don’t) Want From Financial Advisors
Many high-net-worth investors turn to experts when they need financial advice. And while many of them trust their advisors to help them build and maintain their wealth, there are plenty of things that investors wish advisors would do differently. New research… read more…
- 6 Things to Know About Investing in Taxable Accounts
There are a few different ways to build wealth in your 20s, 30s and beyond. Funneling money into tax-advantaged accounts such as 401(k)s and IRAs is a start, but you can only contribute so much every year. Once you hit… read more…
- 5 Must-Have Estate Planning Tools for Wealthy Investors
When you’re actively working toward building wealth, it’s a good idea to make sure you’re taking steps to protect it. Taking the time to develop an estate plan is a must for wealthy investors, and the sooner you get started, the better. If you don’t have an estate plan in place yet, you can take a… read more…
- How to Use ETFs for Tax-Loss Harvesting
Investing can be tricky to master and one thing it’s important to do is balance your profits against your losses. Selling off stocks or other securities for a profit can actually cost you money if you have to pay a substantial… read more…
- 4 Ways to Minimize Capital Gains Taxes on Investments
Investing can yield big returns, but it comes with a price. When you sell off investments and realize a profit, Uncle Sam expects you to pay taxes on your earnings. These are called capital gains, and they come in long- and short-term variations. These could mean a much bigger tax bill if you’ve had a… read more…
- 4 Ways Wealthy Investors Can Minimize Investment Taxes
Investing is all about building wealth but taxes can curb your portfolio’s growth if you’re putting your money in the wrong places. Keeping your investments as tax efficient as possible is especially important for high net worth investors, who typically land in a higher tax bracket. Minimizing what you owe isn’t that difficult if you’ve… read more…