Thursday, January 24, 2013

Will Tax Benefits Later Cost You Now?

<.li> Double the Benefit of Your Financial Planning By Avoiding Tax Traps

Russell Holcombe, an Atlanta-based financial planner, identifies four investment vehicles with long-term investment potential which may have short-term shortcomings.  His "yellow lighted" investments include: Roth IRA investments (federal exemption of Roth distributions may not apply at the state level); 401[k] plans (remember that tax penalties may apply if you need this money before 60); debt (remember the interest cost and the inflexibility of debt payments) and college plans such as 529 plans (taxes are saved to be sure--but money is tied up for about 20 years AND your child will need to qualify for and choose to attend a qualifying educational institution).

Like health savings plans and other shorter-time frame choices, Holcombe's valid point is that you LOOK not only at the tax savings, but the overall consequences of the investment.  Do not go blindly into any investment.


Blogger Allan Murray said...

Tax benefits should not cost later, otherwise; it will defeat partly the purpose of paying tax. Anyway, thanks for sharing your thought. By the way, I'm looking for tax filing services Jacksonville and references about tax and bookkeeping.

12:15 PM  
Blogger Greg Rathbun said...

This comment has been removed by the author.

12:56 AM  
Blogger Greg Rathbun said...

Thanks for sharing such valuable information. As Allan Murray said Tax benefits should not cost later. I agree with your statement. If you are looking for references about tax and bookkeeping then you can visit my website regarding all services related to all accounting services.

1:02 AM  

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