Category - Taxes

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Roth IRAs Make Great Estate Planning Tools
2
Want to Make More Money Investing? Try Maximizing Your After-Tax Return
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Will Your Golden Years Be Golden?
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Redirect Tax Savings to Fund Your Life and Legacy
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Understanding the Estate Tax Return

Roth IRAs Make Great Estate Planning Tools

A Roth IRA will protect your investments from its worst enemies: taxes and required distributions. Unlike their traditional counterparts, Roths don’t require you to begin withdrawals from the account once you reach the age of 70 1/2. With time on your side and your investments sheltered from taxes, your Roth will begin to experience what Einstein called the “greatest discovery of all time” – compounding interest.

If the tax-free growth of a Roth IRA isn’t enough to whet your appetite, the estate planning benefits it offers should seal the deal. Bequeathing a Roth is much the same as setting up …

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Want to Make More Money Investing? Try Maximizing Your After-Tax Return

Saving money on taxes has the effect of compounding, giving you more to invest.
Benjamin Franklin famously said, “A Penny Saved is a Penny Earned” and we couldn’t agree more. Investors are always looking for ways to grow their account balances. Reducing their tax bill might be the simplest way.
Here are a few ways to get more out of your investments by paying less in taxes:

  1. Long-Term Capital Gains – Hold investments a year or longer and gains are given favorable tax treatment over short-term gains (less than 1 year) which are taxed as ordinary income.
  2. Qualified Dividends
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Will Your Golden Years Be Golden?

In the past, most people relied on Social Security, pensions, and personal savings to see them through retirement. But with doubts about Social Security’s continued solvency, the decline of traditional pension plans, and savings rates at or near zero, this model just doesn’t work anymore. And simply contributing to qualified accounts (401(k)s, IRAs) isn’t enough. In this post, we’ll look at how to put together a comprehensive plan to help ensure your Golden Years are truly golden.

First, it’s hard to reach your destination if you don’t know where you’re going. Setting goals for retirement, while relatively simple, is critically …

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Redirect Tax Savings to Fund Your Life and Legacy

Who Pays the most Income Tax? Income taxes are a large part of a high-income earner’s budget. According to Pew Research Center, people with Adjusted Gross Income (AGI) above $250,000 in 2014 accounted for only 2.7% of all taxpayers. However, these individuals collectively paid 51.6% of all individual income taxes. Those with AGI below $50,000 accounted for 62.3% of all individual tax returns filed while only paying 5.7% of total income taxes. Rich Pay most taxes according to PEW research

Individual federal income taxes are calculated on a progressive schedule meaning higher tax rates apply as income rises above certain levels. For example, a single individual’s tax bracket …

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Understanding the Estate Tax Return

At 31 pages in length, the Estate Tax return is daunting. It becomes worse when you consider that the only time you will encounter it is when a loved one has recently died. But when you dig into it, filing the form doesn’t have to be terribly complicated.

Regarding its length, the good news is that many of the pages will probably not be relevant to the return you have to file. The form is actually only a 4-page return with 27 following pages of possible schedules to attach, mailing instructions, and other purely informational material.

Unfortunately, you have to …

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