Wall Street Secrets for Tax-Efficient Investing From Tax Pain to Investment Gain

by Gordon, Robert N.; Rosen, Jan M.

• ISBN13: 9781576600887
• ISBN10: 1576600882
• Edition: 1st
• Format: Hardcover
• Copyright: 2001-11-01
• Publisher: Bloomberg Press

Summary

When looking at a monthly brokerage statement, an investor's eyes go straight to the bottom line-the account value. But there's a catch. If you have big gains and decide to play it safe and take some of that money off the table, taxes will take a hefty chunk of those profits. Brokerage firms know how to handle such risk for their own accounts, hedging holdings, for example, to iron out volatility instead of incurring taxable capital gains. Savvy individual investors can use the same techniques to protect themselves. In this indispensable guide, Robert Gordon, a Wall Street veteran, shares the strategies of an insider to demonstrate how you can use the tax laws to your advantage. Written in plain English, this book explains federal and state tax considerations that investors need to know to make the most tax-efficient choices and to protect their portfolios. The emphasis is on practical application, aimed at guiding you to specific, accessible tax-saving goals without having to wrestle down the entire Internal Revenue Code. Thanks to the talents of Gordon and respected journalist Jan M. Rosen, this book is clearly organized along transactional lines, offering easy entry for busy readers and allowing investors to zero in on a powerful array of proven, tax-minimizing techniques and strategies. By the time you finish reading Wall Street Secrets for Tax-Efficient Investing, you will be on your way to reducing your tax bite to a nibble and enjoying the full benefit of your investment earnings.

Author Biography

Robert N. Gordon is the president and owner of Twenty-First Securities Corporation Jan M. Rosen, a long-time editor and former tax columnist in the financial news department of The New York Times, has been responsible for that newspaper's annual tax section for many years

Table of Contents

Table of Contents	viii
List of Illustrations	xv
Preface	xvi
Overview	1	(12)
PART 1: TAXABLE INVESTMENTS AND STRATEGIES FOR PROTECTING THEIR VALUE
Choosing Your Investment Tools Carefully	13	(14)
The How and When of Harvesting Your Losses	27	(12)
Techniques for Utilizing Your losses	39	(8)
Smart Choices for fixed-Income Holdings	47	(8)
Hedging to Avoid Capital Gains Tax	55	(20)
The Quest for Tax Efficiency in Mutual funds	75	(20)
PART 2: TAX-ADVANTAGED INVESTMENT OPPORTUNITIES
Structuring Your Retirement Portfolio	95	(18)
Savvy Ways to Save for College	113	(16)
The Double Life of Life Insurance	129	(14)
PART 3: SPECIAL SITUATIONS
Making Prudent Elections	143	(14)
Managing Your Employee Stock Options	157	(10)
Avoiding Tax Traps for Closely Held Businesses	167	(10)
Planning for Often-Overlooked State Taxes	177	(24)
PART 4: YOUR ANNUAL OPPORTUNITY
Year-End Planning Strategies	201	(16)
Appendix 1: Historical Tax Rates	217	(4)
Appendix 2: Key Points for Investors from the 2001 Tax Act	221	(6)
Notes	227	(2)
Glossary	229	(21)
Index	250