As an investor, it's normal for most of your focus to be on diversifying your portfolio. But aside from spending time on investment selection, it would help to future-proof your assets to ensure your efforts to build wealth don't go down the drain. And since every financial and investment decision you make has a tax consequence, you should incorporate tax planning into your wealth acquisition strategies.
You can multiply your earnings by minimizing your tax liability and avoiding trouble with the IRS.
Do you have a financial plan? Most Americans do not. Unfortunately, the idea of developing a financial plan may seem overwhelming for many. But it may feel more manageable by breaking it down to its most basic components. Here are the five steps of the financial planning process and what they mean for you.
1. Gather Information
The first step is to gather together information about all your assets and liabilities.
When it comes to investing, a key part of making the most profit you can is understanding when to change your mind and when not to change your mind about investments. How can you know which is the right move at the right time? Here are a few reasons to take either step.
Change Your Mind When the Company Changes
Even though you made a considered, well-researched choice to invest in a particular company (or type of company), circumstances may change.