With wedding season fast approaching, brides and grooms are beginning to think about gowns, tuxes, receptions and honeymoons. While a wedding should be about romance and beginnings, marriage has an added dimension: business.
During the third quarter, two significant news items in the investment industry occurred within a week of each other. Neither directly affects most of our clients’ portfolios, but both serve to reinforce our chosen investment philosophy.
Qualified dividends are taxed at the favorable long-term capital gains tax rather than your higher, ordinary-income tax rate. Interest income is generally taxed at ordinary-income rates, which are now as high as 39.6%.