![]() ![]() Minimize this risk by choosing stocks that have a long track record of consistent dividends and avoid companies with highly leveraged balance sheets. ![]() Some companies cut dividends when they face financial difficulties. Consider laddering your CD and bond maturity dates to minimize this impact. If interest rates are lower when that investment matures, your interest income will be reduced by investing at lower rates. With some investments, you can lock in a set interest rate for a specified term. When interest rates go up, your investments could lose value in the short-term. Building a diversified portfolio reduces volatility and provides interest income from a variety of sources. Investments regularly fluctuate in value. Contact a financial advisor to discuss strategies to reduce or eliminate your taxable income. When you invest in tax-free accounts like a Roth IRA or Roth 401(k), you can eliminate taxes on your withdrawals. ![]() Interest income is typically taxed using ordinary income tax rates. ![]()
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