The Big Picture

JANUARY 24, 2024

At the Money: How to Pay Less Capital Gains Taxes (January 24, 2024) We’re coming up on tax season, after a banner year for stocks. Successful investors could be looking at a big tax bill from the US government. On this episode of At the Money, we look at direct indexing as a way to manage capital gains taxes.

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The Motley Fool

APRIL 19, 2024

Money in your 401(k) account grows in a tax-advantaged way -- either by postponing taxation via a traditional 401(k) or by avoiding it altogether via a Roth 401(k). Funds in your 401(k) can't be withdrawn any time you'd like without triggering taxes and penalties. It's always smart to find out what kind of fees you'll face.

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The Motley Fool

MAY 13, 2024

They allow you to save for retirement, while also saving on taxes. Your contributions are tax-deductible, and you only pay taxes when you withdraw your money in retirement. The great thing about IRAs (besides the tax savings) is that they let you buy almost any type of investment.

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The Motley Fool

APRIL 1, 2024

Image source: The Motley Fool/Upsplash There are many ways you can invest your money, from traditional options like stocks and mutual funds to more recent options like cryptocurrency. These are a must, because they help you save on taxes. But anybody who is working can open an IRA and start making tax-deductible contributions.

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The Motley Fool

APRIL 22, 2024

Fortunately for me, my full-time employer sponsors a tax-advantaged retirement account, and offers a contribution-matching program. The only options were some mutual funds that are balanced based on your risk tolerance and projected retirement date. Turns out I could, but it was a slightly complicated process.

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The Motley Fool

NOVEMBER 24, 2023

The bulk of them are managed by mutual fund companies, with most of those companies limiting your investment choices to their family of funds. In fact, you may not even have access to that fund company's entire fund lineup. But there are scenarios in which you might be better off doing exactly that.

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The Motley Fool

JANUARY 22, 2024

So if you want the option to retire at, say, age 52, then you'll need to keep some of your long-term savings outside of a tax-advantaged account. Sure, you could choose one specific mutual fund over another in your 401(k). But you don't get to dictate what assets those funds actually invest in.

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The Motley Fool

FEBRUARY 26, 2024

With its high contribution limit, tax advantages, and potential for a company match, it could be your biggest source of savings once you retire. The biggest fees in 401(k) plans are often the investment fees charged by mutual fund companies. You should aim to avoid actively managed mutual funds with high expense ratios.

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The Motley Fool

APRIL 18, 2024

And some plug-in hybrids can qualify for a pre-owned EV tax credit of up to $4,000 -- making them an even better deal for your budget and the planet. The biggest immediate impact on your personal finances from going solar is that the federal government is offering a generous tax credit for installing residential solar.

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The Motley Fool

OCTOBER 13, 2023

If you contribute some of your earnings to an IRA, you can shield some income from taxes. They give you a limited penalty-free withdrawal to buy a home If you're funding an IRA to have savings down the line in retirement, then it's generally best to leave that money alone until retirement. IRAs allow you to buy stocks individually.

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The Motley Fool

APRIL 15, 2024

They invest heavily in stocks and mutual funds Baby boomers have the largest percentage of their wealth in stocks and mutual funds. Experts often recommend the 50/30/20 rule , which says 50% of your after-tax income goes to needs, 30% to wants (non-essentials), and 20% goes to saving or paying off debt.

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The Motley Fool

MARCH 17, 2024

If you'd prefer to maximize your tax break now, you can open a traditional (pre-tax) version of any of them, but if you'd prefer to enjoy tax-free income after you retire, a Roth account is certainly an option.

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Integrity Financial Planning

NOVEMBER 7, 2022

Using a strategy called tax-loss harvesting, you can earn capital gains tax credits on your investment losses. What is Tax-Loss Harvesting? This strategy is when you sell stocks, mutual funds, exchange-traded funds (ETFs), and other investments carrying a loss to offset gains from other investments sold.

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The Motley Fool

MAY 19, 2024

You can invest the money you deposit in the account in almost anything you choose, including stocks, bonds, mutual funds, exchange-traded funds, and CDs. It's a powerful retirement savings vehicle because it offers important tax advantages. If you're not taking advantage of the potential tax savings, consider opening one.

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The Motley Fool

MARCH 29, 2024

Higher contribution limits than you might think It's well known that the money you contribute to your 401(k) gets you a tax deduction, but many people don't know how much money they're allowed to set aside, tax deferred. Here's a few you need to know.

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The Motley Fool

MARCH 3, 2024

Most employers and their plan providers will give investors a menu exclusively of mutual funds and exchange-traded funds to pick from. Some of those mutual funds, such as target date funds, can carry relatively high fees. All you'll have to worry about are capital gains taxes.

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The Motley Fool

MARCH 30, 2024

Why the Roth IRA is different The Roth IRA has one important feature that separates it from just about every other tax-advantaged retirement savings account: You can withdraw your contributions tax-free and penalty-free at any time, for any reason.

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The Motley Fool

FEBRUARY 19, 2024

A family office may offer financial planning, investment management, tax expertise, and charitable giving opportunities. Hedge funds are often far riskier than investing in a mutual fund, and they are exclusively for people with at least $200,000 in income or $1 million in net worth.

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The Motley Fool

FEBRUARY 28, 2024

The high contribution limit -- $23,000 in 2024 (or $30,500 for those 50 and older) -- provides most investors with a substantial amount of tax-advantaged savings. Your investment options are limited Most 401(k) plans offer a limited set of ETFs or mutual funds where you can invest your contributions. Image source: Getty Images.

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The Motley Fool

JANUARY 31, 2024

The best way to save for retirement is with tax-advantaged retirement accounts. If you only save through a regular brokerage account, you won't get any tax benefits. Roth IRAs let you make tax-free withdrawals in retirement. If you haven't set up an IRA already, do so immediately so you can start saving on taxes.

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The Big Picture

APRIL 11, 2024

And even still, fund fees and taxes remained a major cost element. In 1978, Congress enacted Internal Revenue Code Section 401(k), which allowed tax-deferred savings through a company-administered plan. Lower trading costs, a rampaging bull market, and tax-deferred investing led to millions of new entrants into markets.

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The Motley Fool

MARCH 10, 2024

Many of the funds you'll commonly find in 401(k)s are notorious for charging costly fees -- notably, mutual funds and target date funds. So if you're going to invest your 401(k), consider going heavy on index funds. Plus, with a Roth 401(k), you set yourself up with tax-free withdrawals during retirement.

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The Motley Fool

SEPTEMBER 12, 2023

These investments are often mutual funds or target date funds. You can buy mutual funds or target date funds, but also stock shares in individual companies as well. A Roth IRA , on the other hand, allows you to take money out tax-free -- although you don't get that upfront deduction for contributions.

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The Motley Fool

JANUARY 7, 2024

Many people also have a tax refund coming their way in the next few months. If you choose the IRA route, you'll be able to decide how you want to invest your money and when to pay taxes on it. Mutual funds and exchange-traded funds (ETFs) charge expense ratios, which are an annual fee you pay the fund manager.

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The Motley Fool

JANUARY 18, 2024

The tax deferrals might be overrated Tax savings are a popular selling point of 401(k) plans. That means your 401(k) contributions come right off the top, before state and federal taxes, etc. The result is lower taxable income at the end of the year, so you pay less in taxes. Image source: Getty Images.

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The Motley Fool

NOVEMBER 27, 2023

Maximize your tax savings There are many types of accounts you can use to invest. Some of them help you save on taxes, so it usually makes sense to contribute to these first. With a traditional 401(k), you contribute pre-tax income, and you're taxed on withdrawals in retirement. stock market.

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The Motley Fool

JUNE 16, 2023

Tax-advantaged accounts There are a few different types of tax-advantaged investment accounts, and not all of them are geared toward retirement. What they have in common is that they can lower your tax bill and help boost your investments. 401(k) : This is a tax-deferred, employer-sponsored retirement plan.

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The Motley Fool

JANUARY 13, 2024

Take what they're giving you IRAs and 401(k)s are tax-advantaged retirement accounts. In the case of traditional accounts, the money goes in pre-tax and you pay income tax on it when you make withdrawals. For Roth accounts, the money goes in after taxes and your withdrawals are tax-free. Image source: Getty Images.

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The Motley Fool

MARCH 26, 2024

Nicknamed the "Bond King," Gross ran Pimco's Total Return Bond Fund for decades, enriching himself (he's worth an estimated $2.5 billion) and investors in that fund. While MLPs can complicate your taxes (they send K-1s instead of 1099-DIVs), they supply tax-deferred income, which Gross likes. Here's why.

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The Motley Fool

MARCH 30, 2024

Both are readily available through many major online brokers , and both can be used to invest in stocks, bonds, ETFs, mutual funds, and more. But which will allow you to contribute the most money on a tax-deferred basis? And both account types allow eligible participants to set aside lots of money for retirement.

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The Motley Fool

JANUARY 31, 2024

It's smart to make good use of tax-advantaged retirement savings accounts such as 401(k)s and IRAs. In an IRA, you can invest in individual stocks and/or in mutual funds and exchange-traded funds (ETFs). However much you're investing these days, consider investing more.

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The Motley Fool

APRIL 21, 2024

This especially holds true if you opt to favor mutual funds in your account, which commonly have much higher expense ratios than index funds. Make a 401(k) part of your retirement savings strategy It absolutely pays to fund your 401(k) to the point where you've claimed every matching dollar your employer is offering up.

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The Motley Fool

MARCH 22, 2024

Wealthy Americans also tend to put their money in investment funds, such as mutual funds. An easy way to invest in the stock market is with an index fund. They take advantage of tax savings opportunities Another stereotype about the 1% is that they don't pay their fair share of taxes.

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The Motley Fool

OCTOBER 27, 2023

These accounts provide tax advantages, as people who contribute don't pay taxes on the money they invest in the year they put the funds into their account. Open a tax-advantaged retirement plan with a brokerage firm Once you know how much to invest, you'll need to open a tax-advantaged retirement account at a brokerage firm.

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The Motley Fool

SEPTEMBER 9, 2023

Also keep in mind that most retirement income is still taxed like regular work-based income, so you may be pocketing less than you're withdrawing from an IRA, for example. That said, there are some tax implications to consider. Create a hypothetical, income-producing portfolio using the amount you've got saved up.

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The Motley Fool

JANUARY 11, 2024

Most plans offer a small variety of mutual funds to choose from, and if none of those funds meet your needs, you're stuck with them, anyway. But if you're looking to customize your portfolio by investing in index funds or individual stocks, for example, you generally can't do that with a 401(k).

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The Motley Fool

MARCH 20, 2024

They'll only pay a small percentage in taxes upfront right now, and then they'll be able to withdraw the money tax-free in retirement. These accounts don't offer the same tax benefits as custodial IRAs, but they also have fewer limitations. This account can be either traditional or Roth.

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