Join Jane Barratt for an in-depth discussion in this video Tax benefits, part of Personal Investing Basics.
- Regardless of where you are on your investment journey,…whether you're just learning, doing some virtual trading,…managing your own investments,…or you have an adviser managing your money for you,…it's critical that you understand the tax implications.…I know, I know.…It's never fun talking about taxes.…But my goal with this video…is to show you how taxes on investments work,…so you can make smarter decisions.…First, it's important to understand…that in many tax systems around the world,…income generated from investments has a lower tax burden…than income generated from the hard work you do…in your day to day job.…
The theory behind the difference is that investment money…helps to create jobs, and therefore should be treated…more lightly than less productive money paid for your labor.…To show you the impact of this,…take $50,000 earned from two people in New York City.…One earned the money from working 40 hours a week.…The other earned $50,000 from her investment in Apple stock,…which was up 50% over the years that she held it.…
Jane is the founder of GoldBean, an online investing platform that helps first-time and experienced investors alike take their investments into their own hands. In this course, she shares her investment strategies with you. She breaks down the market into its five basic building blocks—cash and equivalents, stocks, bonds, funds, and insurance products—and the different vehicles where you can invest these building blocks. She also covers topics such as the importance of a balanced portfolio, understanding and managing your risk, identifying value in the market, and building your "money muscles" over time. Plus, learn how to calculate the rate of return of a portfolio vs. general market performance. Last, Jane outlines the options for DIY investing, when it makes sense to work with an advisor, and how to avoid costly investment fees.
- Why should you invest?
- Understanding compound interest
- Comparing stocks, bonds, and funds
- Managing risk
- Building a portfolio
- Finding where to invest money
- Working with a financial advisor