Generally, when it comes to investing, everyone only talks of the money that you are going to earn while never focusing on what should be a priority… Keeping It! I’m not talking about market fluctuations. I’m talking about taxes.
Depending on each individual investor’s particular situation, careful consideration should be given to investing a portion of their portfolio in investments that provide tax benefits.
Did you know that there are investments that provide tax credits which reduce your yearly tax bill? That’s right, if you qualify, a $10,000 investment could provide a credit that would reduce your tax bill by an average of approximately $1,050 each and every year that you are in the investment. A credit is not a deduction, but rather a dollar for dollar reduction of your actual tax bill.
This is not a credit that is later recaptured, here today and gone tomorrow. Some investments provide deductions that can offset and even completely eradicate the taxes due on a large gain or unusually high earning year’s income. Then there are also investments that provide income streams that are tax favored so that you keep more of what you actually earn. Many of these provide income and appreciation while providing tax benefits.
It is of utmost importance that you remember that there is no one-size-fits-all plan. During the one-hour, no-cost consultation, your Financial Solutions Group registered financial professional can begin to help you understand what investments are available and how they work, while making sure that they are suitable for your particular situations and circumstances..