May 06 2008
mutual funds for tax savings
» Escrito en Business Tips por writer3 a las 13:51
mutual funds for tax savings
“Nothing in life is certain except death and taxes.”
–Benjamin Franklin
How true this three hundred year old saying is! However retired individuals can enjoy Tax relief by use of an efficient investment strategy. In this way, the retired individual can keep more of their hard earned money and assets for themselves and their families.
In seeking Tax relief, Municipal bonds or `munis’, have a long history of appreciation by retirees who wish to seek some kind of haven from the IRS, as well as Stock Market volatility. Essentially, the interest that is earned by investments in `munis’, is exempt from federal tax and in some instances state and local tax. It makes sense that the higher your tax bracket, the more Tax relief you may gain from investing in `munis’.
Tax- managed mutual funds are also a good option for retiree investments as the Managers of these funds use a number of strategies to pursue tax efficiency. Equity funds have also historically been more tax efficient as they have the potential to enjoy a lower investment turnover rate.
It is very important to check what securities are held in tax-deferred accounts because some time ago, Congress made a reduction in the maximum federal rate to 15% on some dividend yielding income. Some investment experts also recommend real estate trusts and high yield bonds are more appropriate for taxable accounts.
Retirees also have to make a major decision when it comes to selling different assets. The advantage of Tax-deferred investments is that they compound before tax so have far greater earning potential and better Tax relief benefits.
Do you also want to learn about getting rid of your IRS and/or state tax problems? Visit us at our website for money saving Tax Debt Tips and Strategies. http://www.LimonWhitaker.com
Over the past few years N. F. Centeno and partners have helped thousands of people with their IRS and state tax problems.
We’ll Handle The IRS For You
If you have urgent questions or concerns about your tax debt, we are available to help you at 800.993.1249 Monday to Friday 6:00AM to 8:00PM Pacific Time.
mutual funds for tax savings
