Audio available in app
Passive income from investments can be taxed at a lower rate from "summary" of Tax-free Wealth by Tom Wheelwright
Passive income from investments is a powerful way to build wealth because it is often taxed at a lower rate than earned income. This is due to the favorable tax treatment that the government provides for investment income. When you earn money from investments, such as dividends, capital gains, or rental income, you may be subject to capital gains tax or qualified dividend tax rates, which are generally lower than ordinary income tax rates. For example, long-term capital gains and qualified dividends are typically taxed at a maximum rate of 20%, compared to the higher marginal tax rates tha...Similar Posts
Understand your financial history
To get a handle on your finances, you need to take a deep dive into your financial history. This means understanding your past ...
Revisit your financial plan regularly
One of the most critical aspects of managing your finances is consistently reviewing and updating your financial plan. You cann...
Rich dad thinks outside the box
Rich dad always had a different way of looking at things. He didn't follow the traditional path that most people followed. Inst...
Don't chase hot stocks
When investors are chasing hot stocks, they are essentially trying to predict the future. They believe that by investing in com...
Continuously seek new knowledge
One of the key principles emphasized throughout the book is the importance of constantly seeking new knowledge. This concept is...
Don't rely on others for financial security
When it comes to money, it can be tempting to rely on others to provide financial security. Maybe you think your parents will a...
Continuously seeking new opportunities for growth and development is essential
In order to achieve success and wealth, it is crucial to always be on the lookout for new opportunities for growth and developm...
Stay disciplined and focused on longterm goals
To achieve early retirement, it is crucial to maintain discipline and focus on your long-term goals. This means resisting the t...
Social welfare can be maximized through optimal government policies
The central idea put forth is that the well-being of society can be enhanced by implementing government policies that are caref...
Behavioral biases can impact asset allocation decisions
Behavioral biases, such as overconfidence, loss aversion, and hindsight bias, can significantly influence the decisions we make...