The Tax Reform has been etched in stone and the dust has, for the most part, settled. I wanted to teach/describe to the reader/ to readers that there are still advantages to the tax-advantaged accounts in 2018, even if we are in slightly lower rates, with a few other minor things to think about. Therefore, this article will go into detail on the pre-tax 401(k), Traditional IRA and the Health Savings Account, in relation to the Tax Reform and how it can still open up more cash to invest. I will have a few tid bits at the end, to think about, as well.
By now, you have come across 10’s, and heck maybe even 100 sites that are dedicated to dividend investing. You have dissected the dividend income reports and the figures that members are posting in the community. Further, you read what stocks are being purchased & by whom, as well as in what dollar amounts & frequencies.
If you’ve been to our website, then you have seen those items and have seen us post our income results each month and where we stand in our journey to financial freedom with the main catalyst of dividend investing. Instead of being “this thing” that investors and the community is doing, I wanted to pull a major, not the only, but a major driver from behind the curtain on the “why” we are dividend investing. To break it down in one painfully wonderful word, taxes.
December 2016. Almost 6 months after I posted about crushing over the $7,000 mark, I have now jumped over the next rung on the projected dividend income high jump bar. It couldn’t have come at a better time, when weeks are frustrating with traffic pile-ups from snow, working later hours for “the man” and the holiday season upon us. To say I didn’t think I was going to reach this goal would be a lie, I knew I would get here. I just knew it. Luck has quite a bit to do with it, but I had faith and confidence in the actions I was doing, that I would get to the new height. In this post I will share what I did to arch the back over the $8,000 in projected dividend income bar!
Now that we are entering December, it has been four full months at least since I have begun my maximization for tax-efficient investment vehicles. I have now been able to experience what it feels like to see my earned-cash be invested in the stock market on a bi-monthly basis, knowing where my end goal is. This article dawned on me when I updated my portfolio’s cost basis, share ownership and forward dividend income as I push through the last month. So what does it feel like and what have I learned from maximizing these investment accounts? Let’s find out!
Finally, a fun title, right? Labor day has just ended and I am writing this article, as I have recently updated my portfolio and just smiled at what has occurred. As the community may remember, I have been writing about my new strategies that I have put in place on my portfolio, and the results are quite pleasing. This article, I am hoping, will show you the actual impact on my portfolio from the actions I have taken and to also share my progress towards financial freedom. Remember – I am trying to keep as much money in our pocket from our income, to maximize the amount of assets we can buy, to decrease this thing called “time” that we are counting down towards financial freedom! Continue reading
Two months ago was my last individual stock purchase. The market was showing signs of distress and on Thursday, August 28th, a purchase was made. This has been a familiar face to not just me, but both dividend diplomats and the price was right for an additional purchase. The position I further enhanced was primarily due to industry knowledge, yield and direction financial institutions are heading. Let’s find out why I purchased more shares in Citizens and Northern (CZNC)!
Welcome back! After the first two posts, I can see now the heat coming from the articles and the insight that individuals are also providing through their comments. We all want to save on taxes, reduce the liability, invest more money and keep more of that money, which we earn through our sources of income. Here we are… Part 3 to reduce taxes and invest MORE. This is possible everyone, VERY possible. The first portion of my strategy was to maximize my 401(k) with my employer, which will result, in this first year, a savings of OVER $5,000 and the second portion of the strategy led to tax savings of over $1,000 MORE! However, as you guessed it, it does NOT end there.