Published By Banyan Hill Publishing | | | | Published By Banyan Hill Publishing | | | | Banyan Nation, April is here, and you know what that means…
Your federal tax return is due in a little over two weeks!
For nearly my entire adult life, I did my own taxes. But as I get older and my return gets more complex, I find it’s worthwhile to have a tax pro look at it. My accountant managed to take a major bite out of my tax bill, and I really wished I had called her sooner.
If you want some great advice on lowering your upcoming tax bill, I’ll be having a special guest on The Banyan Edge podcast on Monday.
Trust me, you’ll want to tune in for this one. I’m betting you’re going to learn a few new tricks.
Tax management matters, and it has a massive impact on your actual take-home returns. So while you have taxes on the brain, I recommend you take a minute to look at your overall portfolio.
How are you allocated? Where do you keep your long-term holdings versus your short-term trades?
As a general rule, it doesn’t really make a lot of sense to hold a stock you intend to own forever in an IRA or 401(k). If you’re not selling it, it’s not generating at taxable income … so it doesn’t make sense to take up precious retirement account space for a position that’s already as tax efficient as you can get.
Similarly, rental real estate comes with all kinds of tax advantages, including depreciation write-offs. Why would you own a house in an IRA when very little of the income is taxable in the first place?
And what about bonds?
Under the right conditions, bonds can make an excellent investment. (Adam O’Dell and I routinely debate this when we get together.)
But bonds are horribly tax inefficient, as the interest earned is taxed as ordinary income at your marginal tax rate. So as much as you can, I recommend that you own tax-inefficient investments, like bonds, in a retirement account.
The same is true of short-term trading. Short-term capital gains are taxed at a higher rate than long-term gains. It makes more sense to shelter those gains in a tax-deferred retirement account.
I could go on all day, but you get the idea. Making good investments is only one part of your returns.
Good tax management also plays a major role. So take a little time this month to review your portfolio. See if your current allocation between your taxable and your tax-deferred accounts makes sense. You’ll be glad you did.
And now, let’s see how the team has been navigating the past week. | | | A shocking report from the federal government indicates fossil fuels will still be our No. 1 source of energy by the year 2050.
While most investors believe the big money has already been made in oil, one analyst proclaims: “This bull market is not even halfway over.”
For full details on his No. 1 stock, click here. | | | Weekly Recap - This Banking Crisis Points to a U.S. Recession
Bank failures are like cockroaches: There’s rarely just one or two. But whether it’s over, or just in a calm before the storm, the damage is done.
Smaller banks are getting more conservative, which means they’re lending less … and starving America’s small businesses of the capital we need to grow and avoid recession.
- How to Protect Yourself Against the Fed’s Central Bank Digital Currency
We’re moving from a paper dollar to a digital dollar. It’s inevitable and the Federal Reserve has already told us as much. This is a big deal because it means Uncle Sam is about to get a lot more hands-on in your financial affairs.
That’s scary, but you don’t have to just sit back and take it. You can opt out of this system and protect your wealth from poor banking, and even poorer regulation.
- The World’s Billionaires Are Buying Into Oil and Gas
We can’t live without fossil fuels. Despite all the advances in renewable energy, our economy needs oil and gas to function.
Perhaps not surprisingly, Carl Ichan, David Tepper, Ray Dalio and even the great Warren Buffett himself have been backing up the truck to buy energy stocks. And this is why you should follow their lead.
- What is a “Black-Necked Swan” in the Finance Industry?
If you’ve been investing for any length of time, you likely know that a black swan is an unexpected event that crashes the market. But what about a “black-necked swan,” something that looks like it could be devastating, but on closer look, ends up not being quite so bad?
So what are we looking at in today’s market? Was the bank run a black swan … or just a black-necked swan? And how do trade in it?
- The Inflation-Beating Upside of Income Investing
Earning a positive return isn’t enough. Unless it’s above the rate of inflation, you’re still losing money in real terms. Proper income investing means earning a reliable income stream, while also enjoying steady growth.
This is where dividend growth stocks come into play. And we have one for you here that’s been a personal favorite of mine for years.
Be sure to tune in to The Banyan Edge podcast on Monday! As I mentioned, I’ll be having a special guest on to chat about lowering your tax bill.
Really pay attention here. Like I said yesterday, it’s critically important to fix small problems while they’re still small. Any tax saving strategies you can put in place today will compound in value for as long as you’re alive and making money!
Until then,
Charles Sizemore
Chief Editor, The Banyan Edge P.S. Are you enjoying the Banyan Edge? We’d love to get your take on our research, and we love answering questions. So if you have any questions, insights or just want to leave us a note, please send an email to BanyanEdge@BanyanHill.com. | | | (c) 2023 Banyan Hill Publishing. All Rights Reserved. Protected by copyright laws of the United States and international treaties. This Newsletter may only be used pursuant to the subscription agreement. Any reproduction, copying, or redistribution, (electronic or otherwise) in whole or in part, is strictly prohibited without the express written permission of Banyan Hill Publishing. P.O. Box 8378, Delray Beach, FL 33482. (TEL: 866-584-4096) Legal Notice
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