Category: Taxes
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Capital Gains Tax – How Much is Too Much?
Capital gains occur when securities are sold at a higher value than their purchase price, reflecting growth in your portfolio. While this is a positive sign, it also comes with a tax bill. For this article, I attempted to solve for the minimum amount of capital gains a balanced portfolio…
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Unrealized Gains – Pay the Tax and Move on?
Whether you are a frequent trader or not, investors will inevitably come across this situation: Being “stuck” with an investment because swapping it for another would cost a lot of taxes. Most times this results in indecision, and a less-than-ideal portfolio. This article will walk through the analysis behind how…
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How Portfolio Taxes Can Erode Wealth
Investors rarely factor in the impact taxes have on their portfolio return. This impact is commonly referred to as tax friction. Simply, tax friction is the way taxes eat away at your investment gains. When you make money from interest, dividends, or selling stocks, you have to pay taxes on…
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