Sponsored by Sarah Cecil
Tax Freedom Day generally falls around this time each year. This is the day when the nation as a whole has earned enough money to pay off its total tax bill for the year, according to the calculations made by the Tax Foundation. So you may want to use Tax Freedom Day to think about ways you can liberate yourself from some of the investment-related taxes you may incur.
Of course, Tax Freedom Day is something of a fiction, in practical terms, because most people pay their taxes throughout the year via payroll deductions. Also, you may not mind paying your share of taxes, because your tax dollars are used in many ways – law enforcement, food safety, road maintenance, public education, and so on – that benefit society. Still, you may be able to reduce those taxes associated with your investments, leaving you more money available to help you work toward your important goals, such as a comfortable retirement.
Here are some suggestions for making investing less “taxing”: