You usually buy stock for one of two reasons. Either you are looking for a steady stream of dividend income, or you expect the market value of the stock to increase, providing you a capital gain.
If you play the stock market it's important to know the taxability of your securities transactions. Some of the rules can make your eyes glaze over, but here's an easy guide on what you should know.
Put as much money as you can into tax-sheltered retirement accounts such as 401(k)s and IRAs. The investments in those accounts grow tax-free until retirement - meaning you'll wind up with more money in your old age than you would have otherwise.
You usually buy stock for one of two reasons. Either you are looking for a steady stream of dividend income, or you expect the market value of the stock to increase, providing you a capital gain.
If you play the stock market it's important to know the taxability of your securities transactions. Some of the rules can make your eyes glaze over, but here's an easy guide on what you should know.
Put as much money as you can into tax-sheltered retirement accounts such as 401(k)s and IRAs. The investments in those accounts grow tax-free until retirement - meaning you'll wind up with more money in your old age than you would have otherwise.
