Hey there, Retirement Rockstar!
Whether you're counting down the days to retirement or already living it up in your golden years, navigating the tax maze is a key part of maintaining your financial health. Ready to rev up your retirement engine? Let's embark on a thrilling journey through tax-efficient investing!
In the tax landscape, there are two main pit-stops:
1) Ordinary Income Tax: Think of this as your regular gas station. It covers your employment income, savings account interest, bond interest, and certain types of annuities.
2) Capital Gains Tax: This is the high-octane fuel that powers your investment vehicle. It applies to your qualified dividends and gains from selling investments. The big win? Long-term gains (held for over a year in 2023) enjoy a more scenic, low-tax route!