Rules recently changed for estate planning, especially planning for large estates. If you drafted your estate plan before the new rules kicked in, examining your plan again might save you thousands of dollars.
Selling your business can fulfill many dreams: your lifetime of professional achievement, pride in leaving behind a thriving enterprise – and a potentially large cash payout. But especially if you look to leave a chunk of your estate to charity and are short on heirs, such a bonanza can turn into a mess unless you use the right instruments to protect your money.
Even though only a few weeks remain in this calendar year, you can still make a few financial moves to avoid serious tax surprises next April.
If you’re like most taxpayers, you have no clue about the most effective tax strategies for these financial vehicles – especially if you lack access to expensive accountants and attorneys. Here’s some guidance.
Market downturns, like the one in October, are a good time to adjust your fund portfolio to minimize the tax bite. Here’s how to calculate the best ways to do that – now and in the future.
After the headline risks of the market and inflation, taxes present the biggest obstacle to your building wealth. Your best investment strategy seeks to not only generate returns on your capital but also to save as much of your money as possible to keep it working for you. One of the surest ways to preserve your capital: Reduce your taxes on investment income and gains.
Here are some strategies.
After tax season, when they realize exactly how much tax they paid at home, a number of my friends, colleagues and clients asked me what they should do to reduce their taxes next year. While I’m not a tax professional, I certainly pay attention to tax rules and rates regarding investing.
My short answer to their question was – create a portfolio of low-fee, thoughtfully constructed stock index mutual funds or exchange-traded funds. Yet not all of them do the job for you. Here’s how to find the right one.
If 20-somethings ask me what to do to get ahead financially, I have a laundry list: create a budget, start investing now, be smart about your taxes and so on. If I absolutely have to narrow it down to one thing, I’d say, open up a Roth individual retirement account.
Tax strategies are key elements of financial planning. When sharing your fortune with someone else, no matter how you accumulate it, you should understand the tax implications so that your good intentions don’t come back to bite you.
If you start a job in the middle of the year, chances are you will be over-taxed. You get a refund, but it’s not an inefficient use of your money. To prevent this problem altogether, use something called the part-year withholding method.
When you get a job, you file the W-4 form, aka the employee’s withholding allowance certificate, with the new employer. This form instructs the employer how much tax to withhold for the Internal Revenue Service from each of your paychecks.