Continuing our Grammy week of musical financial planning.
Taxes have always been a vexing problem, reaching back to 1966 we hear the Beatles complaining about the taxman. Sorry no Beatles video, but we did find George Harrison.
If you drive a car, I'll tax the street
If you try to sit, I'll tax your seat
If you get too cold I'll tax the heat
If you take a walk, I'll tax your feet
Cos I'm the taxman, yeah I'm the taxman
Yes, minimizing the tax bite from your earnings and investments seems to be an ageless problem. So, don’t forget the basics save in tax advantaged accounts where you can. Delay paying taxes on your investments by holding for the long term when it makes sense. Use losers to offset gains when you can. Consider tax free bonds for your fixed income.
On the other hand, paying taxes is not so bad, it means you made money.