Some desirable investment income - like interest and dividends - might actually hurt high-net-worth investors' bottom line. This comes from an article by Larry Swedroe in Financial Advisor Magazine.
He outlines four hidden costs that can quietly erode over 1% of after-tax returns each year:
- Cash Drag
- Tax Deferral
- Step-up and Charitable Giving Advantage
- Financial Planning Flexibility
For our Listener Question: "Are brokerage account gains taxed before the money is withdrawn?" If you've ever wondered how your taxable investment account stacks up next to your IRA or Roth, this one's for you. We dig into the 'magic middle' of retirement savings and clear up how and when Uncle Sam wants his share.
And to wrap up the show, Dave in New York shares his work of raising dogs to help the blind. 🦮
Resource: Article by Larry Sweroe in Financial Advisor Magazine: The Hidden Cost Of Investment Income
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