Are your Investments Rasining your Taxes?

Am I holding the right kind of investments?

This is probably a question very few taxpayers think of and even fewer taxpayers realize that traditional retirement accounts can be causing you to pay unnecessary taxes.

Let’s first talk about regular investments outside of retirement accounts. Regular mutual funds may be the most egregious example of an investment that can be causing you to pay unnecessary income and capital gains taxes. If you have securities investments outside a retirement account look for a separately managed account to minimize these taxes.
Also, many people become real estate investors when they start making good money because they hear of the positive tax aspects of real estate investing. The fact of the matter is if you make too much money you lose the capacity to realize passive income losses against regular income unless you qualify as a real estate professional.

And lastly you wouldn’t want to be paying income taxes when you could be paying capital gains taxes would you? This can happen with investments in your retirement account such as single stocks or etf’s using a buy and hold strategy or company issued stock inside of a retirement account.