The Motley Fool

DECEMBER 7, 2023

If you bought a fund tracking the benchmark S&P 500 and reinvested the dividends over this period, you'd still only end up with an average compound annual return of 9.9%. Nonetheless, the Oracle of Omaha himself has often said that most investors should simply buy a low-cost index fund that tracks the S&P 500 and call it a day.

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The Motley Fool

JANUARY 16, 2024

Vanguard, one of the world's largest fund families by assets under management, has earned the trust of millions of investors for several good reasons. First of all, Vanguard exchange-traded funds (ETFs) often have the lowest expense ratios in the industry, which has helped many of their funds outperform their peers.

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The Motley Fool

DECEMBER 21, 2023

As a result, many of the top-performing exchange-traded funds (ETFs) in 2023 have an undeniable technological skew to them. A comparison The table below outlines the most important metrics for each fund. The Vanguard 500 Index Fund (NYSEMKT: VOO) tracks the S&P 500 index. Image source: Getty Images.

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The Motley Fool

FEBRUARY 7, 2024

So far, most of their investments have been individual growth stocks, but as their portfolios have increased in value, it's time to diversify their holdings with exchange-traded funds ( ETFs ). Vanguard is different from other firms because it is owned by its funds, which are owned by its shareholders.

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The Motley Fool

NOVEMBER 6, 2024

The tax-free growth and income you get to enjoy in retirement. You could withdraw that money during retirement without taxes chipping away at your portfolio. You'll just need to wait until you're 59 1/2 and meet the five-year rule to access those earnings tax-free. Its main appeal? Image source: Getty Images. The best part?

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The Motley Fool

MAY 29, 2024

There's nothing wrong with dipping your first toe in Wall Street's waters through a low-cost exchange-traded fund (ETF). Even so, you still have dozens of index-tracking strategies and hundreds of funds to choose from. What's an exchange-traded fund? You don't have to pick a strategy right away.

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The Motley Fool

SEPTEMBER 24, 2024

With that in mind, here are two exchange-traded funds (ETFs) that can give your portfolio exposure to Bitcoin and related companies without requiring you to buy the digital currency on an exchange or select individual Bitcoin-related stocks. The fund aims to track the price of Bitcoin over time, net of fees.

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The Motley Fool

SEPTEMBER 13, 2024

If you're a fan of exchange-traded funds, then you're also likely a fan of index investing. Indeed, the world's most-owned exchange-traded fund is the SPDR S&P 500 ETF Trust meant to mirror the world's best-known market barometer. of the fund's total assets. of the index. It's simple, really.

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The Motley Fool

DECEMBER 29, 2023

Exchange-traded funds, or ETFs, are a popular investment option that offer numerous benefits to investors. ETFs are collections of securities that trade on stock exchanges like individual stocks but track the performance of an underlying index, basket of securities, or commodity. Image source: Getty Images.

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The Motley Fool

MARCH 25, 2024

While long-term investors will likely maximize their returns by buying and holding stocks , those needing cash in the near term or building an emergency fund are smart to hold cash. The trick is to make your cash savings more tax-efficient. Treasuries is exempt from state income tax. Image source: Getty Images.

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The Motley Fool

JUNE 19, 2024

Both offer excellent tax advantages. One of the drawbacks of 401(k)s, in the eyes of some investors, is that they tend to offer a limited menu of investment choices -- perhaps just a dozen or so mutual funds or exchange-traded funds (ETFs). Your taxable earnings shrink by $7,000, shrinking your tax bill.

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The Motley Fool

MARCH 19, 2025

That's why a broadly diversified index fund like the Vanguard S&P 500 ETF (NYSEMKT: VOO) should be at the top of every investor's first shopping list. The fund can also be the foundation of a thoughtfully designed portfolio, or play several useful supporting roles in other investment styles. Image source: Getty Images.

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The Motley Fool

OCTOBER 21, 2024

Enter Vanguard exchange-traded funds (ETFs), the brainchild of investing legend John Bogle. These funds typically boast lower turnover rates compared to actively managed alternatives, a characteristic that substantially reduces investors' tax liabilities. stock market in a single fund.

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The Motley Fool

DECEMBER 22, 2023

Not only do the holidays inspire goodwill and cheer, but many people are interested in writing off their donations as we close out the tax year. But there's also a lot of confusion about charitable donations and when you can write them off for tax purposes. To write off a charitable deduction, you'll need to itemize your tax return.

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The Motley Fool

JULY 29, 2023

After you open and fund a 529 plan, you don't have to let your money sit in your account. You may be able to invest your money in different funds that align with your goals and risk tolerance. At the end of the year, you won't have to worry about a tax bill because the money in your account grows on a tax-free basis.

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The Motley Fool

JULY 24, 2024

Open an individual retirement account For many, Roth IRAs are the best thing since sliced bread because you can contribute after-tax dollars now in exchange for tax-free income later. This can be particularly rewarding if you expect to be in a higher tax bracket in the future and want to eliminate the worry of future taxes.

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The Motley Fool

OCTOBER 14, 2024

With risk-free CDs, Treasury bills, and high-yield savings accounts paying yields around 5%, dividend-paying stocks and exchange-traded funds ( ETFs ) lost their luster. Continuously writing covered calls also isn't a tax-effective strategy because the seller books the premiums as capital gains with each options expiration.

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The Motley Fool

DECEMBER 2, 2023

The 401(k) is a cornerstone of retirement planning -- it's tax-friendly, hands-off, and convenient. Contributions to a traditional IRA may be deductible, and earnings grow tax-deferred until you take withdrawals in retirement. Contributions to a Roth IRA are made with after-tax money, and withdrawals are tax-free in retirement.

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The Motley Fool

SEPTEMBER 30, 2024

For example, a Roth IRA offers exceptional tax benefits, making it an outstanding retirement planning tool. It also comes with immediate tax benefits. For example, taxes on 401(k) contributions are deferred until retirement, meaning you can lower your taxable income during your working years by contributing more to your 401(k).

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The Motley Fool

JULY 19, 2024

Even if you add investments outside of retirement accounts, like individual stocks, bonds, and mutual funds, 50% of American households have less than $9,000 invested. The IRA comes with tax incentives. For every dollar you contribute to a traditional IRA, you can deduct it from your tax return. That's a far cry from $1.46

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The Motley Fool

JUNE 4, 2024

Exchange-traded funds (ETFs) are a great choice. In fact, tax laws can actually make capital gains a more attractive option for generating income. You can simply sell shares to generate income from these paper profits, possibly paying less in taxes due to preferential tax treatment on long-term capital gains.

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The Motley Fool

SEPTEMBER 2, 2024

Roth IRAs have a unique tax break you don't receive from popular accounts like 401(k) or traditional IRAs. They allow you to contribute money that's already been taxed and then take tax-free withdrawals in retirement, as long as you're 59 1/2 years old and made your first contribution at least five years ago.

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The Motley Fool

MAY 24, 2024

Since individual retirement accounts (IRA) aren't tied to your employer, you'll have full control over the account and can invest in assets like exchange-traded funds and individual stocks to supercharge your investment portfolio. Let's say you are 25 years old and you contribute $7,000 to a Roth IRA every year.

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The Motley Fool

SEPTEMBER 22, 2024

percentage point cut to the federal funds rate, and further cuts are likely ahead. CD rates are closely tied to the federal funds rate, which means saving money in a certificate of deposit could become less lucrative in the near future. An ETF is basically a basket of stocks that trades on a stock exchange as a single investment.

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The Motley Fool

MAY 26, 2024

Image source: The Motley Fool/Upsplash At this point, the 2024 tax season is thankfully in many people's rearview mirrors. And hopefully, you've either gotten your tax refund already or are expecting it to arrive any day now. As of early May, the average tax refund issued this year was $2,864.

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The Motley Fool

APRIL 7, 2024

For starters, you contribute after-tax dollars to the account so that you can enjoy tax-free income during retirement. But your 401(k) investment options are typically limited to a few investments, like index funds and target date funds. Your Roth IRA offers more flexibility and freedom.

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The Motley Fool

JANUARY 15, 2024

It's passive, there are employer matches, and it comes with tax breaks. In IRAs , you can invest in any individual stock or exchange-traded fund (ETF) that you could in a standard brokerage account (some have exceptions for higher-risk investments like options ). That said, I also believe a 401(k) can often be overrated.

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The Motley Fool

DECEMBER 16, 2023

This problem also plagues most income-oriented exchange-traded funds (ETFs). Those ETFs are the Vanguard 500 Index Fund (NYSEMKT: VOO) , Vanguard High Dividend Yield Index Fund (NYSEMKT: VYM) , Vanguard International High Dividend Yield Fund (NASDAQ: VYMI) , and Vanguard Dividend Appreciation Index Fund (NYSEMKT: VIG).

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The Motley Fool

MAY 25, 2024

Maximize Roth IRA contributions Roth IRAs receive a lot of attention because they allow you to contribute after-tax dollars now in exchange for tax-free withdrawals in retirement. So, if you amass a million dollars in your Roth IRA, it will be 100% tax-free as long as you're 59 1/2 and have satisfied the five-year rule.

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The Motley Fool

JULY 17, 2024

With tax-free growth and tax-free withdrawals in retirement, it separates itself from other accounts like 401(k)s and traditional IRAs (although those are great options, too). A 2% yield on $1 million worth of shares would pay you $20,000 annually, and since this would happen in a Roth IRA, it'd all be tax-free.

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Exchange-Traded Funds Taxes Accounting Returns 245

The Motley Fool

SEPTEMBER 4, 2023

You also make contributions with pre-tax income. You can make tax-deductible contributions. Your contributions aren't tax deductible in the year you make them but you get to withdraw money tax-free as a retiree. There are also actively managed funds where you have to pay a high fee to a professional to pick assets.

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The Motley Fool

APRIL 22, 2024

The emergence of spot Bitcoin exchange-traded funds (ETFs) has opened up a new avenue for investors to enter the cryptocurrency market without the complexities of managing crypto wallets and navigating exchanges. Not to mention, my employer only allows access to those funds once a person is no longer employed by them.

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Mutual Funds Exchange-Traded Funds Accounting Taxes 245

The Motley Fool

FEBRUARY 9, 2024

With a traditional IRA or 401(k), you get a tax break on your contributions up to an annual IRS limit, which can change from one year to the next. If you put $5,000 into a brokerage account, you won't reap any tax benefits. But if you put that same $5,000 into an IRA, you won't pay taxes on $5,000 of your income.

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The Motley Fool

APRIL 21, 2024

As with any tool, it is only as accurate as the assumptions it makes and the data it has, and should not be relied on as a substitute for a financial advisor or a tax professional. ETFs can make it simple to match long-term market returns All you need is a simple exchange-traded fund (ETF) tracking a solid market index with low annual fees.

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The Motley Fool

NOVEMBER 18, 2024

Are S&P 500 index exchange-traded funds (ETFs) investors' best bets as the year draws to a close? Unsurprisingly, the Vanguard Small-Cap Value ETF (NYSEMKT: VBR) hasn't delivered the kind of returns that several of Vanguard's funds that own large-cap growth stocks have. And it isn't just a post-election phenomenon.

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The Motley Fool

JULY 14, 2024

Here's how I plan to retire as a millionaire and pay no taxes. Once it's open, you can contribute up to $7,000 in 2024, and the amount typically stays the same or rises every tax year. The beauty of that is you don't pay taxes on your distributions in retirement. So let's walk through this together.

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The Motley Fool

NOVEMBER 21, 2024

You contribute after-tax dollars -- hopefully when you're in a lower tax bracket -- and your withdrawals in retirement will be completely tax-free once you've reached 59 1/2 and met the five-year rule. A Roth IRA is the best thing since sliced bread for many folks. What makes it so special?

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