The Motley Fool

SEPTEMBER 27, 2024

Minimize your investment fees Most 401(k)s give you a choice between a variety of mutual funds or index funds your employer chooses. Most mutual funds charge expense ratios , which are listed as percentages in your prospectus. However, your personal contributions are always yours to keep.

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The Motley Fool

MAY 29, 2024

Create a diversified portfolio One of the easiest ways to build wealth is to create a diversified portfolio. Although some exposure to these stocks is OK, I'd encourage passive investors to opt for index funds that focus on broader growth markets such as cybersecurity, cloud computing, or artificial intelligence (AI).

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The Motley Fool

APRIL 15, 2024

They invest heavily in stocks and mutual funds Baby boomers have the largest percentage of their wealth in stocks and mutual funds. Many experts recommend subtracting your age from 100 to determine the percentage of your portfolio that should be in stocks.

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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

FEBRUARY 11, 2024

Average 401(k) balance for 55 to 64 year olds Mutual fund company Vanguard crunches the numbers every year using data from its own clients. Don't undermine your eventual nest egg by underexposing yourself to growth and overexposing your portfolio to safer havens like bonds. investor stands. Ten years is a long time!

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The Motley Fool

MAY 20, 2024

I've since contributed to those accounts every year, generally striving to max out my state's tax deduction over the course of a year. Until the need to spend the money in their accounts became clear, I invested those contributions in stock-based index funds. What stocks should you add to your retirement portfolio?

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The Motley Fool

MAY 29, 2024

If you're really lucky, you could have the temperament to build and maintain a balanced and diversified portfolio, getting the best of both worlds. There's nothing wrong with dipping your first toe in Wall Street's waters through a low-cost exchange-traded fund (ETF). You don't have to pick a strategy right away.

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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

MAY 11, 2024

Over 91 million American households have already received a tax refund in 2024. Just 9% of Americans plan to invest their tax refund, according to a January survey from Bankrate. You don't need to be a genius to take your tax refund and turn it into a much more valuable asset. Should you invest your tax refund all at once?

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The Motley Fool

SEPTEMBER 9, 2023

Whatever your risk-tolerance is, your portfolio is probably intended to generate a certain amount of income every month, or at least every calendar quarter. Create a hypothetical, income-producing portfolio using the amount you've got saved up. That said, there are some tax implications to consider.

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The Motley Fool

OCTOBER 28, 2024

However, if you withdraw that $10,000 now, not only do you lose that potential growth, but you may also face early withdrawal penalties and taxes (which could be between 20% and 30%, depending on your tax rate), leaving you with only $7,000. thanks to compound interest.

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The Big Picture

JANUARY 24, 2024

At the Money: How to Pay Less Capital Gains Taxes (January 24, 2024) We’re coming up on tax season, after a banner year for stocks. Successful investors could be looking at a big tax bill from the US government. On this episode of At the Money, we look at direct indexing as a way to manage capital gains taxes.

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Taxes Mutual Funds Capital Asset Management 98

The Motley Fool

SEPTEMBER 21, 2024

You can also buy bonds through ETFs or mutual funds. Funds are baskets of securities and can be a more accessible and affordable way to add bonds to your portfolio. There will be years when the market drops and your portfolio loses value. You can buy treasury bonds through a broker or directly from the government.

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Mutual Funds Debt Taxes Accounting 230

The Motley Fool

JANUARY 8, 2024

So if you, say, lose your job or face an unexpected medical bill, you are less likely to have to dip into your portfolio. REITs are companies that own and often manage a portfolio of income-producing properties. I hold a couple of REITs in my portfolio. But you might instead look to a gold ETF or mutual fund.

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The Motley Fool

SEPTEMBER 4, 2023

The program could increase its revenue by increasing tax rates or raising the payroll income tax cap. Investors should build a portfolio of stocks, bonds, mutual funds, exchange-traded funds (ETFs), and other securities. There are a few different options to overcome the projected solvency issues.

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Mutual Funds Exchange-Traded Funds Assets Taxes 246

Walkner Condon Financial Advisors

MAY 31, 2024

Breathe Easier Next Tax Season with These Planning Strategies Every year, most of us smile when we see April 15th in the rearview mirror. The completion of our tax returns being filed marks the beginning of a nine month period where we don’t need to think about funny acronyms and form numbers.

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Taxes Liabilities Mutual Funds Assets 105

The Motley Fool

MAY 18, 2024

The average 401(k) balance for retirees age 65 and older The data comes from mutual fund giant and retirement plan manager Vanguard. Between these two scenarios, investing $400 in the market every month for 25 years should result in a portfolio worth approximately $530,000. And yes, delaying retirement is one of those choices.

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The Motley Fool

NOVEMBER 30, 2023

Exchange-traded funds, or ETFs, can be superb investing vehicles. ETFs are both cost- and tax-efficient, and they can instantly diversify a portfolio across a broad swath of the equity markets or within a specific sector/theme. The fund's popularity comes from its impressive performance.

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Mutual Funds Exchange-Traded Funds Hedge Funds Stakes 246

The Motley Fool

SEPTEMBER 2, 2023

But while there are clear benefits to funding a 401(k), you may not want to keep all of your retirement savings in one for a couple of good reasons. IRAs offer more investment options One downside of 401(k)s is that they generally limit you to investment funds, like index and mutual funds , and do not allow you to invest in individual stocks.

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Mutual Funds Accounting Taxes Funds 246

The Motley Fool

MAY 28, 2024

Even for people at or over the age of 65, mutual fund company Vanguard reported that their clients' average 401(k) balance in 2022 stood at just a tad over $230,000. Last year's average contribution was on the order of 4.8%, according to mutual fund company and plan manager Fidelity. Over the past 15 years, 88% of U.S.

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The Motley Fool

DECEMBER 10, 2024

Tax-loss harvesting If you're an investor, you may already know that you might have to pay capital gains tax on profitable investments. What you might not know is that any investment losses can be used to help offset gains for tax purposes. This is known as tax-loss harvesting. Consider this example. Think of it this way.

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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. By age 65, my portfolio should be worth approximately $1.6

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The Motley Fool

SEPTEMBER 23, 2024

This is why Peter Lynch, the legendary investor who crushed the market when running his mutual fund, Fidelity Magellan, has it as one of his top criteria when evaluating a stock. Here's why growth investors should consider both Remitly and Rocket Lab for their portfolios. Durable growth is a wonderful thing.

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The Motley Fool

APRIL 1, 2024

Image source: The Motley Fool/Upsplash There are many ways you can invest your money, from traditional options like stocks and mutual funds to more recent options like cryptocurrency. Here's what it found and how to choose the right investments for your portfolio. These are a must, because they help you save on taxes.

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Mutual Funds Exchange-Traded Funds Investing Taxes 130

The Motley Fool

FEBRUARY 5, 2025

Interval funds are closed-end investment companies that might appeal to investors looking for different ways to diversify their portfolio by providing access and exposure to illiquid strategies or alternative assets. In addition, you can purchase shares in an interval fund on a daily basis at NAV, similar to an open-end mutual fund.

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The Motley Fool

APRIL 18, 2024

And some plug-in hybrids can qualify for a pre-owned EV tax credit of up to $4,000 -- making them an even better deal for your budget and the planet. The biggest immediate impact on your personal finances from going solar is that the federal government is offering a generous tax credit for installing residential solar.

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The Motley Fool

AUGUST 5, 2024

Generally, savers are advised to use tax-advantaged plans for retirement savings purposes because, well, they come with tax breaks. A traditional IRA or 401(k) lets you shield some of your income from the IRS by offering tax-free contributions. A Roth IRA or 401(k) gives you tax-free investment gains and withdrawals.

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The Motley Fool

AUGUST 17, 2024

These things can definitely hurt your portfolio, but smaller, regular losses can also be hard on your retirement savings over time. For retirement savers investing things like mutual funds or exchange-traded funds, you'll probably come across what's known as an expense ratio. Image source: Getty Images.

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Dear Mr. Market

NOVEMBER 17, 2023

Market: The stock market is made up of thousands of choices and one easy way to gain exposure to it is via mutual funds. Costs/Expenses : ETFs typically have lower expense ratios compared to mutual funds. Tax Efficiencies : ETFs are generally more tax-efficient than mutual funds.

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Mutual Funds Exchange-Traded Funds Funds Education 59

The Motley Fool

MAY 1, 2024

A portfolio of stocks is going to do well over time. If your kid's 14 right now, don't put their college fund in the stock market. Robert Brokamp: The key there, remember with the IRA and it stands for individual retirement account, is that you get tax benefits by putting it into an IRA. I mentioned saving for college.

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The Motley Fool

MAY 13, 2024

They allow you to save for retirement, while also saving on taxes. Your contributions are tax-deductible, and you only pay taxes when you withdraw your money in retirement. The great thing about IRAs (besides the tax savings) is that they let you buy almost any type of investment.

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Mutual Funds Taxes Accounting Funds 130

Integrity Financial Planning

DECEMBER 7, 2022

Mutual funds have been a popular way to invest, but are they what’s best for your financial plan? Brian talks about what happens with a mutual fund, who has them, and what might be a better fit instead. According to Brian, mutual funds are kind of like driving a 1987 Astrovan. What can you do about taxes? (6:01).

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Mutual Funds Funds Taxes Portfolios 52

The Motley Fool

JANUARY 2, 2024

Compare this strategy with going the active route and giving your money to a mutual fund manager. And to add insult to injury, over a 10-year period, 85% of these funds lagged the S&P 500. This has the added benefit of deferring taxes until you sell the index fund, which is likely decades in the future.

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Mutual Funds Funds Investing Stakes 189

The Motley Fool

MARCH 17, 2024

These numbers also assume you'll continue adding money to your retirement fund in the meantime, and invest the bulk of it in the stock market. Mutual fund company T. times and six times your annual salary tucked away in a retirement fund by the time you're 50; the midpoint of that range is 4.75 So what's the number?

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The Motley Fool

JANUARY 30, 2024

Between life's ordinary expenses like food, housing, and taxes, there's just not always much money left over from the average individual's annual income of around $41,000 (according to the Census Bureau), or the country's typical household income of just a little over $75,000 per year. That's easier said than done, especially these days.

Mutual Funds 246

Mutual Funds Accounting Legal Stakes 246

The Motley Fool

NOVEMBER 27, 2023

Maximize your tax savings There are many types of accounts you can use to invest. Some of them help you save on taxes, so it usually makes sense to contribute to these first. With a traditional 401(k), you contribute pre-tax income, and you're taxed on withdrawals in retirement. You don't need to do this yourself.

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Mutual Funds Taxes Investing Accounting 147

The Motley Fool

JULY 10, 2024

From the fund's public market entrance in May 2015 to the end of 2020, the Grayscale fund averaged a 37% price premium over its holdings in pure Bitcoin (CRYPTO: BTC). Early Bitcoin adopters appreciated the Grayscale fund's availability in ordinary stock-exchange accounts. The mutual fund was converted into a proper ETF on Jan.

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