Let me tell you about some legal ways to avoid getting taxed on profits from the stock market. You can make a lot of money now with the stock market as low as it is at this time as I teach you in my home study course. The very best way is to buy and sell your stock through Individual Retirement Accounts (IRAs). IRAs can help you legally avoid taxes and add a fantastic boost to your retirement plans. The IRA was originally developed in 1974 for people not covered by a company pension plan. "The individual retirement account legislation allowed the average person a chance to put money into a tax-advantaged account," according to Bruce Grace, a Chartered Financial Analyst and Assistant Professor of Finance at Morehead State University.
This is a huge benefit to individuals, regardless of whether they have company-established pension plans or not. "The Roth IRA may be an even a better deal for those who think they will be in a higher tax bracket at retirement," Grace added. I personally go a step further and mean it when I tell you that "the Roth Ira is literally the best thing since sliced bread" and I guarantee you is "neater than peanut butter". It may seem a little confusing because since the original enactment of IRA legislation, several types of IRAs have been developed with a variety of characteristics that can meet your investment and retirement needs.
The most common forms of the IRA are as follows. The traditional IRA gives you a tax deduction on all of your contributions to the account during your working years and taxes what you take out of the account in your retirement. The Roth IRA does not give you a tax deduction during your working years but you pay no taxes on withdrawals while you are retired. The 401(K) is an IRA that your employer may or may not offer instead of a pension where, unfortunately, you are generally restricted to investing in mutual funds. The Roth 401(k) is very new and is much better than the standard 401(k) but the jury is out as to whether corporate insiders will adopt it for their employees. The SIMPLE and SEP IRAs are very nice supplemental tax shelters for small business owners and family businesses. Finally, the Education IRA gives you a way to save for a child's college studies.
ABOUT THE AUTHOR: Dr. Scott Brown, Ph.D., the Wallet Doctor, is a successful investor. Dr. Brown holds a Ph.D. in finance. The Wallet Doctor is sought after for investment advice and coaching. For more information visit Dr. Brown's site at http://www.BonanzaBase.com or sign up for his investment tips at http://www.WalletDoctor.com
1. Begin investing immediatelyProcrastination is the number one enemy of... Read More
As an expatriate you are in a privileged savings and... Read More
The first point to mastering money management is that you... Read More
"Financial planners are like dentists: they may occasionally inflict pain,... Read More
Online trading is so seductive - just sit, click, and... Read More
Here are ten more WISDOM packed GEMS that ooffer very... Read More
Who is the SEC and why should I ask them... Read More
There is a tremendous amount of software, complicated high priced... Read More
For many investors, and even some tax professionals, sorting through... Read More
In part 1 of this article I started to look... Read More
Real Estate can be a useful tool for investing. The... Read More
In many respects, Singapore is the Switzerland of Asia.Begun in... Read More
The last time you spoke with your broker did he... Read More
I submit that the successful day trader would profit well... Read More
Going public in this manner is ideal for companies that... Read More
The syntax is tortured, the grammar mutilated, but the message... Read More
How do you make your investment decisions and where do... Read More
The U.S. economic data reported this week showed strong output... Read More
Denial is a ubiquitous psychological defense mechanism. It involves the... Read More
Many investors think that investing in mutual funds is free.... Read More
The perfect company - it's the holy grail of the... Read More
A fickle stock market encourages good-humored mockery.Recently, as I watched... Read More
The following perspective on (day) trading comes from my many... Read More
Typical day traders and swing traders look for stocks with... Read More
The man sat in a chair beside a dressing room... Read More
Angel investors are individuals who invest in emerging business ventures.... Read More
Shorts. Let's see. If there are shorts there must be... Read More
This column has previously discussed "picturing the future that we... Read More
Non-indexed mutual funds try to keep it secret that actively... Read More
With visions of an ATM in every neighborhood in China,... Read More
Q: What have been the most successful approaches to attracting... Read More
Options are good investing and speculative instruments. But options terminology... Read More
Investing in New Zealand might be much easier than investing... Read More
I submit that the successful day trader would profit well... Read More
The stock market fell sharply Thu and Fri before and... Read More
Here are some useful tips on investing. When you make... Read More
Scams and frauds are designed to take your money through... Read More
The Light Crude Continuous Contract hit an all-time high at... Read More
Many people hear "retirement" and think- what? 401K? Roth vs.... Read More
What really controls the economy? Forget interest rates, forget deficits,... Read More
What are the risks?Today, investors are increasingly turning to global... Read More
Many Young people live for Today. They really don't fully... Read More
There are many reasons to be investing these days, and... Read More
Most People just don't understand the power of using their... Read More
When it comes time to retire how many people would... Read More
The perfect company - it's the holy grail of the... Read More
A significant number of corporations that settled accounts in the... Read More
If you're like many Americans over the age of 55,... Read More
Mutual fund managers use fake fund names to part you... Read More
You'll want to opt for the no-load or institutional share... Read More
You are 55 years old (or somewhere around there) and... Read More
Margin is one of those things that novices find puzzling... Read More
Have you ever noticed how some words in the English... Read More
For those who have never given their financial future a... Read More
There is a cat fight brewing between Direcway LLC, Starband... Read More
Many investors think that investing in mutual funds is free.... Read More
When trying to analyze whether a promotional ad for an... Read More
Putting Rare Coin Market Cycles to Work for You...Until recently... Read More
If you are doing your own investing in the stock... Read More
In this day and age of online brokers for virtually... Read More
There are a number of key reasons why individuals and... Read More
The economic data reported Fri showed continued above trend growth... Read More
Discipline can be simply defined as your ability to follow... Read More
Suggesting the use of a franchise business as a vehicle... Read More
Are you as good an investor as you think? Do... Read More
When raising capital for a business venture, warrants are a... Read More
Investing |