Taxes

I've got a great deal for you. Send me $188 a month, every month, and at the end of the year I'll give it back to you. Without interest. If that sounds like a great deal to you, call our toll-free number immediately to sign up. Sound silly? It's exactly what many people do with their income tax withholding.

If you're a mutual fund investor using a taxable account, you need to be aware of the potential difficulties posed by fund distributions. Fail to account for them properly and you can end up paying far more in taxes than you should. We show you how to avoid this common trap.

As we enter mutual fund distribution season, here's an important review of how distributions work and their impact on investors.

Earning a great return isn't the end of the story when you invest in a taxable account. What really matters is how much of your return is yours to keep after the taxman comes to call. We take a detailed look at the after-tax implications of Upgrading vs. indexing in determining which SMI strategy is best for taxable accounts.

National tax policy may be a matter of perpetual debate, but there's little question how most people feel about their personal taxes. Less is better! A few steps taken now might save you a bundle next April.

With SMI readers looking at a fifth consecutive year of stock gains, it's time to review one of the more efficient ways to give to charity. Donating stock directly to charity can mean both a larger gift for the ministry you want to bless and a larger contribution deduction for you. As you might expect, certain rules apply to such a good deal. We provide the details.

Which is better to keep in your IRA/401(k), stocks or bonds? If you have both taxable and tax-advantaged retirement accounts, this question could have significant financial implications. But don't blindly follow the conventional wisdom, because the right answer depends on your investing strategy. We'll steer you to the most profitable course for your unique investing plan.

The old tax adage says, "It's not what you earn, but what you keep." That's certainly true when it comes to choosing the right savings vehicle, particularly if you're a saver in a high tax bracket. Thankfully there's a simple formula that can guide you to the best products for your situation.

Retirement brings many changes, and your investing plan may need altering as well. But today's retirees can't afford the same "clip the coupons" all-bond portfolio their parents retired with. The combination of longer life expectancies, lower interest rates, and a greater reliance on their own savings require a new strategy. Learn how taking a total return approach to your portfolio can combat both volatility and inflation, as well as how to get regular income from your portfolio and protect your IRAs from high taxes.

Year-end is the most dangerous time of the year for mutual fund investors with taxable accounts. That's because many funds make distributions of income and capital gains — distributions that can end up on your tax return, even if you haven't sold any shares. Discover two common misconceptions about fund taxation, and how you can protect yourself from an unnecessary tax bill.

Variable annuities are often sold as retirement planning devices that can save you money on taxes. What's often left unsaid is they often provide subpar investment returns due to their high fees. Here are 7 tests to help determine if a variable annuity makes sense in your situation.