Invest
in the stock market to stay ahead of inflation and use
the best
way verified by historical statistics, to increase your
finances over time. Research will show lower inflation brings
higher returns to stocks and bonds. For about the past thirty
years the average return on stocks has been 8%. Compare this
to a passbook account at 3%, even with just 2% inflation,
after paying 1% in taxes you will have (0) zero return. Taxes
are not paid on individual stocks until you sell them. When
stocks are held short-term, you pay short-term capital gains
taxes. When stocks are held long term you pay long-term capital
gains taxes, which is considerably less than the short-term
gains.
When investing in the stock market your primary focus should
be on profits and earnings, not taxes. Until a stock is sold
it is allowed to grow with increased profits, dividends and
sometimes, stock splits. Usually, the longer you hold a stock
the more money you will make. Don't let taxes stop you from
investing, since we pay taxes on just about all types of
income (see monthly deposit savings calculator).
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