“There’s one for you, 19 for me,” go George Harrison’s lyrics for “Taxman,” the classic 1966 hit from the Beatles.
Each year when W-2s and 1099s hit, it’s natural to feel like we’re getting grifted…
The tax preparation industry, which lobbies Congress to mire your taxes, has a market size of more than $11 billion (going on revenue).
(It’s a shame Harrison isn’t with us today to write a follow-up single called “TurboTaxman.”)
That’s why, in this week’s State of the Market, Chief Income Strategist Marc Lichtenfeld coaches you on how to structure your investments to minimize your taxes.
Marc defines the various forms of tax-deferred accounts before delving into what securities should be held in taxable accounts versus tax-deferred accounts.
In easy-to-understand language, Marc lets you know if the stock you’re invested in legally classifies you as a shareholder or a “fancy-pants partner.”
You’ll know if you’re getting paid in dividends or distributions and what the difference means for your portfolio allocation.
And on top of highlighting tax rates, Marc steers you away from paying double taxes on your investments – and consequently missing out on your much-deserved tax credits.
This week’s State of the Market isn’t meant to be an all-encompassing guidebook to shake off the grubbing mitts of the taxman. If you still have questions after watching, you should reach out to a professional tax prepper for personalized advice.
That said, today’s video is a great place to begin honing your tax efficiency.