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Tax-Efficient Investing Not As Difficult As It Seems


It is important for every investor to be aware of how taxes will affect their investments and returns. Investors in the United States generally receive their 1099 Forms detailing their income from brokerage accounts towards the beginning of February. Taxes due from the income on these investments must be paid on or before April 15 to avoid expensive tax penalties. Investment portfolios can be structured for optimal tax efficiency if the investor carefully considers their plan for each investment instrument.

Create A Plan

It takes year-round vigilance to ensure that your tax burden from investing is minimized for the tax year. The best course of action is to create an investment strategy before you start investing in new investments. The basic rule of thumb for tax-efficient investments is use a taxable account if you plan on withdrawing money within a few years and use a tax-deferred investment vehicle if you plan on holding on to the investment long term.

Use Different Investment Vehicles

Investing in retirement accounts, such as a 401(k) or individual retirement accounts, is tax-deferred until the account owner withdraws the money for their personal use. A Roth IRA is funded with after-tax contributions, so there are no taxes on withdrawals as long as the withdrawals are made after the minimum retirement age. However, in nonqualified brokerage accounts any earnings, such as dividends, are taxable for the year in which they are received. Any gains on investments held less than one year are taxed at a higher rate than ones held long term.

Think Before You Sell

Before selling stocks from your portfolio, consider how it will affect your tax bill for that year. In some instances, you will find that it is better to delay selling the stock until the next calendar year to limit your capital gains taxes for any particular year. However, if the stock is a volatile one or in an industry that is experiencing a downturn, a delay may cost you more than you would save in taxes.

You can also save on taxes if your investing has caused you to lose during the tax year. By using a strategy known as tax-loss harvesting, you can sell the devalued stock at a loss to create a capital loss that will offset your capital gains. However, if you sell at a loss, you cannot purchase the same stock back within a set amount of time, typically 30 days, without incurring a penalty due to the “wash-sale” rule.


Cell Phone Business Via the Web


eyf phoneTo build or create a standard mobile phone company could cost you a lot of money, especially on a monthly basis. The next point that you’ll have to do is purchase stock, you’re going to have to get insurance as well for it just in case an accident happens in your store. You will need to pay your workers and of course the materials that you need to put up a shop. Bottom line, putting up a shop to sell mobile phones is way too expensive.

There are a lot of factors involved to setup and maintain a physical store and service is definitely a part of it. With an online shop you will not need to deal with a shop that is expensive, you will not need to purchase a stock, you will not have to deal with responsibility like insurance with workers, and the list continues. About beginning a web based mobile telephone company, yet another awesome thing is you have the chance to make residual income on each of the phone strategies. For example in the event that you sell a phone, which cost the buyer $60 each month you’ll be able to make money ranging from 10% and 1% fee each moment the client pays their monthly telephone bill. Understanding the typical phone deal is 24 months you are going to get paid a percentage on a monthly basis for 24 months while they are subscribed on the plan. This is the beauty of this thing called of residual income..

Lucrative Income

Yet another fantastic remaining revenue flow is you will get the chance to assist other folks to start up with their particular online cellular telephone companies and you may then get a portion of the revenue they make away from their shops every month, which could easily add up to thousands of dollars in your residual income on a monthly basis. All of these because you have helped them put it up online as well.

Each of us knows an increasing number of individuals are embracing the web to get advice, to shop etc. and that the web is increasing a lot of buyers these days. And buying online for cell phone plans are becoming bigger and larger each day so the chances that the web provides are never ending.  Chances like free cell phones for low income families and it is possible and you can actually start from here. We can all assume that the next ten years, we are going to encounter a growth that is huge in e-commerce. Pioneering entrepreneurs online now can make a lot of money in the future if they start early.

This is why an online company or store for mobile phones has a lot of advantages now. A web based mobile telephone business’ expense is considerably below than that of a conventional mobile telephone business. You can have your own phone as you go and do it yourself and you can be of service to the public as soon as possible without shelling a lot of money for it.


Understanding Important Financial Jargon


9e344e349634408da3b4707eefdd5480A study of 3000 UK adults showed that not understanding financial jargon could cost an average of £428 per year. This has led to some fear-mongerers claiming it costs UK citizens a total of 21 billion nationally, which is nothing short of a perversion of the data. Still, it is true that you risk losing money in the long-term if you do not understand the jargon you are reading and/or agreeing to. This is especially true if you are agreeing to a long-term investment scheme such as a pension or life insurance. Here is some of the more commonly used financial jargon you may hear on the TV and when buying financial products.


This is the movement of cash in and out of your account or in and out of a business.

Gross profit or gross pay 

This is the total amount given before any deductions. For example, your gross pay would be the amount you are paid before taxes, national insurance, pension payments and other deductions.

Net profit or net pay

The net is the amount received after all deductions have been made. Most people see some form of wage slip or wage report that tells how much they received after deductions and pension payments.

Net assets or total net assets

These are your total fixed and current assets minus your long-term and current liabilities. In simple terms, this is how much you are worth after your bills and debts have been taken off.


This is a term used generally to represent what you or your business owes or will owe in the future.

Current liabilities 

Most consider a current liability to be a bill or due payment that is due within 12 months. Things such as your outstanding credit card bills may be considered current liabilities.

Fixed liabilities

This refers to bills or due payments that are due over 12 months away. For example, your mortgage may be considered a fixed liability because even though you make monthly payments the entire amount is not due to be fully repaid for years.


This refers to anything that you own that may have monetary value. It may also be something that has value via service. For example, your knowledge may be considered an asset. In a strictly accounting sense, it does not have monetary value, though in terms of insurance it may have a monetary value. It is what is known as an intangible asset.

Current assets

These are assets you may convert into liquid capital (cash) within a set period of time (usually 12 months).

Fixed assets

These are assets you or a business owns that are used but not for sale. These are things such as your buildings, equipment, fixtures and fittings.

Profit and loss account

A business reporting and monitoring tool. You use it to report and monitor your profit and loss as you operate.


This is an expense that you cannot categorize into a single element of your company’s activities.


This is the projected value a certain item/thing is going to lose over time. For example, a new car depreciates sharply in value once it is driven off a car lot and then more slowly over time. The depreciation may increase if the car is used heavily or not taken care of very well.


This is the retained difference between profits and losses that has accumulated since the company formed.

Return on investment

In simplest terms, this is what you expect to get out of your investment. The return is not always monetary. For example, the ROI of new machines may result in increased productivity.

Working capital

These are your current assets less your liabilities that represent the money you need to invest to keep operating.