Muni bonds and tax-exempt funds have long been a mainstay in the portfolios of income-focused investors who want to manage their tax burdens.
Stock market downturns can be rough on a portfolio’s bottom line, but selling losing investments may offer the potential to reduce an investor’s tax liability.
Staying disciplined in building a well-constructed portfolio over time can help carry investors through the market’s rough spots.
How much can you afford to pay for a car?
Compare the potential future value of tax-deferred investments to that of taxable investments.
Estimate the future value of your current savings.
Estimate how much would remain after paying income taxes and penalties if you took an early distribution from a retirement plan.