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Taxation
Situation
As with anything to do
with money, earnings and investing, taxation is also an
issue.
The way that you
purchase shares and the type of return you get will
affect the amount of tax that you pay. Some dividends
you receive may incur a tax; others will come to you
tax-free. Selling shares will possibly make you liable
for capital gains tax. Again, it depends on your
individual circumstances and the types of investment
decisions you have made.
It is recommended that
you sit down with an accountant or financial adviser
before committing yourself to a large investment in the
share market. They will be able to go through your
income stream and work out the best way for you to
invest. Best means less. That is, less tax.
Now, make the time to
sit down and make an investment plan. Take into
consideration as many of the above factors as possible.
After all, it's your money that we're talking about, and
we firmly believe that the stakes are too high and the
outcome too important to take this step lightly.
The following page has a
checklist for you to complete. Once you have ticked all
the appropriate boxes, you should have an idea about
whether to weigh your share portfolio towards security
and dividends or greater risk and higher profits.
Next:
Checklist
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