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  #1  
Old 11-02-2005, 10:01 AM
KaneKungFu123 KaneKungFu123 is offline
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Default portfollio help program wanted tax bracket?

i used one of those advice programs where you tell them your goals, how much risk you want, when you want your money, and they ask what is your tax bracket... why does this matter?
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  #2  
Old 11-02-2005, 01:08 PM
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Default Re: portfollio help program wanted tax bracket?

If you're in a top tax bracket, it may make sense to choose certain tax-free investments, such as municipal bonds, or to focus on more tax-efficient mutual funds, or to try to get a lot of your returns as dividends rather than short-term capital gains.
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  #3  
Old 11-02-2005, 02:07 PM
FishHooks FishHooks is offline
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Default Re: portfollio help program wanted tax bracket?

An easy example would be choosing between a Roth IRA or a regular IRA.
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  #4  
Old 11-03-2005, 02:48 AM
KaneKungFu123 KaneKungFu123 is offline
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Default Re: portfollio help program wanted tax bracket?

[ QUOTE ]
If you're in a top tax bracket, it may make sense to choose certain tax-free investments, such as municipal bonds, or to focus on more tax-efficient mutual funds, or to try to get a lot of your returns as dividends rather than short-term capital gains.

[/ QUOTE ]

arent dividends taxed the same as capital gains?
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  #5  
Old 11-03-2005, 10:27 AM
stoxtrader stoxtrader is offline
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Default Re: portfollio help program wanted tax bracket?

i think dividends are taxes as normal income, just like short-term capital gains. long-term capital gains are taxed at a lower rate.
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  #6  
Old 11-03-2005, 03:11 PM
KaneKungFu123 KaneKungFu123 is offline
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Default Re: portfollio help program wanted tax bracket?

[ QUOTE ]
i think dividends are taxes as normal income, just like short-term capital gains. long-term capital gains are taxed at a lower rate.

[/ QUOTE ]
nh
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  #7  
Old 11-03-2005, 06:34 PM
Sniper Sniper is offline
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Default Re: portfollio help program wanted tax bracket?

[ QUOTE ]
i think dividends are taxes as normal income, just like short-term capital gains. long-term capital gains are taxed at a lower rate.

[/ QUOTE ]

In the US, as long as the dividends are qualified as actual dividends and not really interest, they are taxed at the lower rate.

See IRS Pub 17 (page 69, and other surrounding pages for other useful info)
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