More Ways To Increase Your After-Tax Investment Returns

You are receiving this email because you signed up to receive Bob Carlson's free e-letter Retirement Watch Weekly, or you purchased a product or service from its publisher, Eagle Financial Publications. [Carlson's Retirement Watch Weekly] [Retirement Reports](www.retirementwatch.com/retirement-resources/) [Retirement Articles](www.retirementwatch.com/retirement-articles/) Brought to you by Eagle Financial Publications More Ways To Increase Your After-Tax Investment Returns by Bob Carlson Editor, [Retirement Watch]( 05/28/2023 SPONSORED [The $15 Trillion Stock Market Shake-Up]( [image]( A $15 trillion market force is set to unleash major change to the stock market. And a select few tiny efficient and innovative stocks are the key in pushing this force. These companies already own huge government contracts and have customers in over 150 countries… and their revenues are increasing up to 52% year over year... So what is this force and why are these select stocks pushing this trillion dollar force? [Click here to get full details now.]( [CLICK HERE...]( Fellow Investor, [Bob Carlson]Last week's Retirement Watch Weekly covered ways to increase your after-tax investment returns. Let’s pick up where we left off. When your investment strategy says it’s time to sell an investment, don’t hold it for months hoping it will mature to a long-term capital gain. It might make sense to wait if it will mature into a long-term gain in only a few weeks but waiting longer might not be worth the tax break. When you do take short-term gains, look for losses you can take to offset them. Know your tax bracket. The tax on your gains can fluctuate with your tax bracket. If your income or deductions vary from year to year, you might factor that into your decision of when to sell. Someone who normally has a very high income might avoid the 3.8% net investment income surtax by selling long-term capital gain assets in a year when other sources of income are lower. Other people might find that lower income one year reduces their long- term capital gains rate below 20%, to 15% or even 0%. In 2022, the long-term capital gains tax rate is 0% for single tax- payers with taxable income up to $41,675 and for married couples filing jointly with taxable income up to $83,350. The 15% long-term gains rate applies to single taxpayers with taxable income up to $459,750 and married couples filing jointly with taxable incomes up to $517,200. Only above those income levels will the 20% maximum rate begin. The bottom line is that you might have an opportunity to take gains at a lower tax cost by selling in a year when you retire, lose a job, work fewer hours or business is down. When large tax deductions one year reduce your taxable income, that also could be a good time to take some extra capital gains. Also, consider other taxes in addition to the taxes on the gains when planning sales of profitable investments. The gains will increase your adjusted gross income, and a higher adjusted gross income can trigger the Stealth Taxes, such as income taxes on Social Security benefits, the Medicare premium surtax, net investment income tax and more. Many people take large gains in one year only to find that the higher gains triggered one or more of the stealth taxes, increasing their effective taxes on the sales. It might be better to spread the sales over several years. Consider the potential for triggering or increasing the Stealth Taxes before deciding to sell profitable investments. Make gifts of gains, but not losses. You can give investment assets to family members and let them sell the assets. This could reduce the family’s taxes when the person receiving the gift, usually a child or grandchild, is in a lower tax bracket. The tax rate on long-term capital gains might change from 20% to 15%, or even 0%. (The person receiving a gift has the same tax basis in the asset that you did, so he or she will have the same amount of capital gain as you would have.) You want to be sure that the person receiving the gift isn’t subject to the Kiddie Tax, which would make the gain taxable at the parent’s top tax rate instead of the child’s rate. You don’t want to give an asset that has declined in value. The recipient’s basis will be the lower of your cost and the current fair market value. That means no one would deduct the loss in value that occurred while you owned the asset. It is better for you to sell the asset and deduct the loss on your return. Then, you can give the sale proceeds or something else. 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No capital gains taxes are imposed on the appreciation that occurred during the previous owner’s lifetime. Since the federal estate tax doesn’t apply to most estates, a good strategy when you own investments with substantial gains is to continue holding them so the next generation can inherit and sell them without incurring any taxes. To a better retirement, [Bob Carlson] Bob Carlson Editor, Retirement Watch Weekly Editor’s Note: Did you know that Social Security laws are constantly changing, adding more rules each year? Some boost your income... but some can rob you blind. That’s why I created my NEW guide, Secrets to Boosting Social Security Benefits. You’ll get the full scoop so you can safely navigate your retirement in these times of volatile markets, raging inflation, and political uncertainty. [Click here to get your copy.]( SPONSORED [The Convergence of A.I. and A Recession?]( [image]( Why wait for the future, when forecasting trends with up to 87.4% proven accuracy is at your fingertips right now? [See the A.I. in Action [Free] Right Here >>]( [CLICK HERE...]( Want More Retirement Advice? Check out my website, [RetirementWatch.com](, where you’ll find hundreds of free articles covering every aspect of retirement planning. Popular Posts: [What Heirs Should Know About IRAs]( [Surprising Tax Havens]( [How to Make Unlimited Tax-Free Gifts]( [How to Avoid Inherited IRA Disasters]( New to the Retirement Watch Community: SeniorResource.com An annuity is a popular investment vehicle that can provide guaranteed income during retirement. However, with so many different types of annuities available, it can get pretty confusing. Which one is right for you? [Click here to find out.]( About Bob Carlson: [Bob Carlson]Robert C. Carlson is the author of the books The New Rules of Retirement and Retirement Tax Guide, editor and investment director of the popular retirement newsletter, Retirement Watch, and editor of the free weekly e-letter, Retirement Watch Weekly. Bob is a frequent speaker at investment conferences around the country, and you can also hear Bob as a featured guest on nationally-syndicated radio shows, such as The Retirement Hour, Dateline Washington, Family News in Focus, The Michael Reagan Show, Money Matters and The Stock Doctor. To ensure future delivery of Eagle Financial Publications emails please add financial@info2.eaglefinancialpublications.com to your address book or contact list. View this email in your [web browser](. This email was sent to {EMAIL} because you are subscribed to Dividend Investor Daily. To unsubscribe please click [here](. If you have questions, please send them to [Customer Service](mailto:customerservice@eaglefinancialpublications.com). 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