Taxes

A reader asked me to write more about taxes. I believe it is helpful to understand taxes in general, and then use the tax code to apply to your personal situation. There are a lot of moving parts, and there are a lot of opportunities to take advantage of the code, or miss out on it. In a very short summary, taxes are about trade-offs.

One can manage taxes through the tools available to them, but ultimately they are making a decision as to amount, timing and extent of realizing gains and paying or deferring tax outlays.You need to understand the basics of various accounts, contribution and distribution rules, and then decide if it applies for your situation. You also have to decide if it makes sense to do the tax planning for a given year, or a lifetime of years.

Anywho, this is something I should probably post to the next newsletter.