The Motley Fool

JANUARY 20, 2025

Many of these companies are structured as master limited partnerships (MLPs), which pass through their profits to their unitholders and as such don't pay corporate taxes. As a result, most pay out very generous distributions, which are similar to dividends, but much of the payout is considered a return of capital.

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The Motley Fool

AUGUST 24, 2024

In spite of receiving Social Security checks, 44% of retirees are considering a return to the workforce, according to The Motley Fool's recent research on attitudes toward the Social Security cost-of-living adjustment (COLA). It's likely the government will intervene and find a way to increase the program's funding before this occurs.

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The Motley Fool

OCTOBER 28, 2024

Professional fund managers are extremely smart, highly educated, hard-working, and ultra-competitive. If you can perform in the top 2% of all professional fund managers on Wall Street, you're sure to find yourself with a very handsome payday at some point. All you have to do is buy a broad-based index fund and hold it for years.

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The Motley Fool

DECEMBER 15, 2024

Professional fund managers tend to be highly educated, hard-working, and extremely smart. But it doesn't take a highly complex trading plan to come out ahead of 98% of professional mutual fund managers over the long run. If you want to beat the professionals, your best bet is to buy a broad-based index fund and just hold onto it.

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The Motley Fool

SEPTEMBER 9, 2024

Image source: The Motley Fool/Unsplash Building an emergency fund is a cornerstone of personal finance -- and once you've got that money saved, it's crucial to find the best place to keep it (and no, keeping it in your checking account isn't usually your best move). Your emergency fund could drop in value Stock investing isn't without risk.

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The Motley Fool

MARCH 19, 2025

Six decades ago, his fledgling fund acquired the struggling textile maker Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B). Chubb's core operating income per share (excluding any tax benefits) grew 30% in 2023 and 13% in 2024. Warren Buffett is one of the most closely followed investors in the world. billion stake now accounts for 2.9%

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The Motley Fool

NOVEMBER 28, 2024

Since withdrawals in retirement are tax-free, housing aggressive growth investments in a Roth can maximize the benefits of long-term capital appreciation. Let me explain why this fund deserves consideration as a Roth IRA anchor holding, and how it compares to Warren Buffett's preferred S&P 500 index fund. 1 through Nov.

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The Motley Fool

SEPTEMBER 5, 2024

That means roughly 85% of actively managed funds -- the term used for investment funds that try to beat the market by buying and selling various stocks -- are actually unable to beat the market over the long term. The first is that to managing an investment fund incurs significant costs. The investment below is for you.

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The Motley Fool

JULY 14, 2024

Image source: Getty Images You've spent all their lives saving for college, and you finally have a pretty hefty sum -- but now that interest rates are high enough to be worth considering, you wonder if there are more ways you could be growing your kid's college fund. How much can your college fund make in a year? What's the catch?"

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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. Why the Vanguard S&P 500 ETF?

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The Motley Fool

JULY 21, 2024

Several successful hedge fund managers sold shares of Nvidia during the first quarter, while simultaneously buying shares of the iShares Bitcoin Trust (NASDAQ: IBIT) , one of the recently approved spot Bitcoin ETFs. It also simplifies tax reporting because most brokerages link directly to tax preparation software.

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The Motley Fool

NOVEMBER 8, 2024

One is to fund a traditional IRA, which gives you an immediate tax break on your contributions. You could also fund a Roth IRA, which doesn't come with an up-front tax break but offers perks galore. With a Roth IRA , your investments gains are tax-free, and withdrawals are tax-free in retirement.

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The Motley Fool

SEPTEMBER 12, 2024

With a traditional 401(k), the more you put in, the more income you can potentially shield from taxes, up to the yearly IRS limit. It generally makes sense to fund your 401(k) plan up to the matching amount your company is willing to give. However, non-medical HSA withdrawals at age 65 or later are subject to taxes.

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The Motley Fool

SEPTEMBER 28, 2024

These accounts allow people with qualifying high-deductible insurance plans to set aside $4,150 for single plans and $8,300 for families out of pre-tax dollars. HSA funds can be invested HSA contributions can be invested , allowing the money to grow. Remember, HSA growth is tax free as long as it is used for medical expenses.

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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. Since its inception in 2010, the fund has achieved an impressive 13.4%

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The Motley Fool

SEPTEMBER 21, 2024

The chart below shows median before-tax incomes by age demographics among the respondents to the Current Population Survey. Age of Respondent Before-Tax Median Household Income 15 to 24 $54,930 25 to 34 $85,780 35 to 44 $101,300 45 to 54 $110,700 55 to 64 $90,640 65 and older $54,710 All respondents $80,610 Data source: U.S.

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The Motley Fool

AUGUST 19, 2024

How your benefits will be taxed There could be good news and bad news for retirees about how their benefits will be taxed. Let's start with the good news: Most states don't tax Social Security benefits. As of now, 40 states don't tax benefits. The 10 exceptions have tax rules that could still work to your advantage.

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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). The S&P 500 , by the way, has averaged annual returns close to 10% over many decades.

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The Motley Fool

OCTOBER 19, 2024

Franklin famously said, "In this world, nothing is certain except death and taxes." Well, it turns out that while none of us can avoid death, you can avoid some taxes in retirement and retirement planning. And that is a good thing, because creating a retirement plan that avoids taxes to the extent possible is smart. What to do?

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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. Which is right for you?

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The Motley Fool

OCTOBER 15, 2024

One of the great advantages of saving for retirement in an IRA or 401(k) is the tax savings. Instead of paying taxes on the money you contribute today, you can defer those taxes until retirement. But eventually the IRS comes asking for its tax revenue. 31 of each year). Image source: Getty Images.

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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

SEPTEMBER 1, 2024

Your 401(k) probably offers a few dozen funds. You can't buy individual stocks, and the funds on offer may be more expensive than those you could get if you had access to the full range of investment options a brokerage firm offers. You could miss out on better tax breaks. You could pay extra fees.

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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 8, 2024

One of the most important is you can defer the taxes on your contributions. Instead of paying taxes on your income during the year in which you earn it, you can wait until you withdraw your savings in retirement to pay taxes, giving you more money to invest upfront. But you can't wait forever to pay your tax bill.

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The Motley Fool

NOVEMBER 7, 2024

The 10 stocks that made the cut could produce monster returns in the coming years. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*. See the 10 stocks » *Stock Advisor returns as of November 4, 2024 During the call this morning, we may make various forward-looking statements.

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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. If you follow certain rules, all your withdrawals from a Roth IRA will be tax free when you retire.

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The Motley Fool

AUGUST 20, 2024

We'll assume you invest your money and get a 10% return. That's the average long-term return of the S&P 500 going back over 50 years. How to start building your retirement savings The best way to get started with your retirement savings is through tax-advantaged accounts. Target-date funds are a simple, effective option.

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The Motley Fool

JULY 7, 2024

Investing too conservatively, for example, could leave you short on funds for your senior years. That is why it's generally a good idea to load your retirement plan with stocks -- either individual companies, if you're comfortable choosing them, or S&P 500 index funds. Roth IRAs and 401(k)s give you tax-free gains and withdrawals.

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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

AUGUST 26, 2024

And to that end, it pays to do a few key things: Live below your means Follow a detailed budget Invest in a tax-advantaged retirement account Let's break each action item down. Plus, you won't pay taxes on capital gains year after year in a traditional IRA or 401(k). And with a Roth, you'll never face taxes on gains at all.

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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

SEPTEMBER 25, 2024

The company's Class A stock has returned 20% annually since Buffett took control in 1965. Meanwhile, the S&P 500 (SNPINDEX: ^GSPC) has returned about 10% annually. federal government has run a historic deficit in recent years, and Buffett believes higher taxes will be used to remedy the situation at some point.

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The Motley Fool

JULY 3, 2024

Choosing the best mix of accounts to house your retirement funds can be challenging. A Roth 401(k) allows employees to contribute after-tax dollars to their retirement accounts and, in return, receive tax-free income during retirement, similar to a Roth IRA. This could get confusing.

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The Motley Fool

AUGUST 21, 2024

Know that the S&P 500 has averaged annual returns close to 10% over many decades. A traditional IRA gives you an upfront tax break, lowering your taxable income by the amount of your contribution. A Roth IRA saves your tax break for when you withdraw money from the account, potentially decades later.

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The Motley Fool

OCTOBER 7, 2024

His hedge fund, Pershing Square Capital, focuses on a few high-quality businesses where Ackman feels the stock has become mispriced, relative to its value. The 10 stocks that made the cut could produce monster returns in the coming years. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.

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The Motley Fool

JULY 31, 2024

Any funds your employer puts into your 401(k) can be invested. A $3,000 match today could be worth $30,000 in 30 years' time if your 401(k) is invested at an average annual 8% return, which is a bit below the stock market's average. For one thing, any gains in your account are yours to enjoy tax-free. A better bet?

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