Comments on: What are the tax implications of investing in the stock market? What are the risks? http://www.stockpickins.com/stock-market/what-are-the-tax-implications-of-investing-in-the-stock-market-what-are-the-risks/ Cherry Picking The Diamonds From The Stock Market Sat, 03 Apr 2010 23:38:59 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Max M http://www.stockpickins.com/stock-market/what-are-the-tax-implications-of-investing-in-the-stock-market-what-are-the-risks/comment-page-1/#comment-4074 Max M Tue, 29 Dec 2009 01:15:59 +0000 http://www.stockpickins.com/stock-market/what-are-the-tax-implications-of-investing-in-the-stock-market-what-are-the-risks#comment-4074 If you're a rookie in investing or stocks, go to www.finance.yahoo.com. Open up a portfolio without using real money. You can give yourself as much or as little money to try out the market. The stocks you want to focus on is consumer staples, consumer discretionary, and healthcare. These are DEFENSIVE stocks that will survive through good and bad times. Most of my positions are in these stocks. Some names include 3M, Procter & Gamble, Kimberly Clark, Exxon Mobil, Walmart, Costco. Everybody's got to eat and wipe their butts regardless of the state of economy. Many of these companies survived through the Great Depression. That's the benefits. You can sleep at night knowing your money is doing well. There are NO guarantees that you won't lose money. It's just that these stocks are the best. They pay good dividends too. Then once you're comfortable and test the waters of the market, you can finally put some real money in. Go to Scottrade.com. They're excellent for beginners.<br><b>References : </b><br> If you’re a rookie in investing or stocks, go to

http://www.finance.yahoo.com.

Open up a portfolio without using real money. You can give yourself as much or as little money to try out the market. The stocks you want to focus on is consumer staples, consumer discretionary, and healthcare. These are DEFENSIVE stocks that will survive through good and bad times. Most of my positions are in these stocks. Some names include 3M, Procter & Gamble, Kimberly Clark, Exxon Mobil, Walmart, Costco. Everybody’s got to eat and wipe their butts regardless of the state of economy. Many of these companies survived through the Great Depression.

That’s the benefits. You can sleep at night knowing your money is doing well. There are NO guarantees that you won’t lose money. It’s just that these stocks are the best. They pay good dividends too.

Then once you’re comfortable and test the waters of the market, you can finally put some real money in. Go to Scottrade.com. They’re excellent for beginners.
References :

]]> By: Hubris252 http://www.stockpickins.com/stock-market/what-are-the-tax-implications-of-investing-in-the-stock-market-what-are-the-risks/comment-page-1/#comment-4073 Hubris252 Tue, 29 Dec 2009 00:36:59 +0000 http://www.stockpickins.com/stock-market/what-are-the-tax-implications-of-investing-in-the-stock-market-what-are-the-risks#comment-4073 With that small amount of money it would probably be best to find a high-yield savings account and build up your investment capital. Once you have about $1000 you can put it into an index fund (small and mid cap do best in a recovery). When you have around $3000 then you can start buying individual stocks. You need that much money in order to be able to have meaningful amounts invested over a diversified portfolio of 5 or 6 individual stocks. Taxes come in to play when you sell shares, you will have to pay capital gains taxes on any profits you make when you sell. How much your capital gains tax is depends on what tax bracket you are in. If you own the stock for less than a year you pay regular federal income taxes on your gains, if you own the stock for over a year then you pay the long term rate. If you are in the bottom 2 tax brackets then your long term capital gains rate is 0%, if you are in the top 4 brackets then your long term capital gains rate is 15%.<br><b>References : </b><br>http://www.moneychimp.com/features/capgain.htm With that small amount of money it would probably be best to find a high-yield savings account and build up your investment capital. Once you have about $1000 you can put it into an index fund (small and mid cap do best in a recovery). When you have around $3000 then you can start buying individual stocks. You need that much money in order to be able to have meaningful amounts invested over a diversified portfolio of 5 or 6 individual stocks.

Taxes come in to play when you sell shares, you will have to pay capital gains taxes on any profits you make when you sell. How much your capital gains tax is depends on what tax bracket you are in. If you own the stock for less than a year you pay regular federal income taxes on your gains, if you own the stock for over a year then you pay the long term rate. If you are in the bottom 2 tax brackets then your long term capital gains rate is 0%, if you are in the top 4 brackets then your long term capital gains rate is 15%.
References :
http://www.moneychimp.com/features/capgain.htm

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