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Assuming you were planning on investing in an ETF. Because you don't work (you are in college) you not eligible for any tax advantage accounts like a Roth IRA. If you invest in an ETF, you will have to pay taxes on my gains and dividends, which means you will have to file taxes, something you are not forced to do now.
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If you have some money that you need to do something with, sure why not invest it? Are you kind of thinking that you would prefer to avoid investment profits for fear of having to pay some tiny tax on them? As a student, you should know well how to follow directions; so doing the same for your taxes should feel familiar."There is some ontological doubt as to whether it may even be possible in principle to nail down these things in the universe we're given to study." --text msg from my kid
"It is easier to build strong children than to repair broken men." --Frederick Douglass -
Does someone claim you as a dependent? If so, you can have up to $1,050 of investment income before you have to file a return. If you are not someone's dependent, you can have up to $10,300 of income before you have to file a return.Originally posted by clatoden99 View Post
Yes, if you have money you don't expect to need within at minimum 5 years, go ahead and invest it. Choose a tax-efficient ETF, such as an S & P 500 proxy.Comment
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Don't understand your question, but here's something: even if you don't do anything with your cash, there's inflation to think about.Comment
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Being afraid to invest b/c of taxes? This is something that you need to learn is part of the game.Originally posted by clatoden99 View Post
yes, you need to be tax savvy - depending on your perspective it can work for or against you.
But buying, selling decisions shouldn't be made entirely based on taxes.
right?Comment
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This is a corollary to getting a mortgage just to save on taxes.Originally posted by Jluke View PostComment
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If you are in a position to start investing, do it. Don't let the fact that earnings are taxable stop you.Steve
* Despite the high cost of living, it remains very popular.
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* There are no shortcuts to anywhere worth going.Comment
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I would always avoid investing in a fund with 50,000 other investors. Your returns are going to be mediocre at best, abysmal at worst.
Invest in yourself. Perhaps a business venture or self improvement so that you can earn more.
My 16 year old son "invested" about $37 in a startup business last week that has paid him about $430 this week, with about 10 hours invested of his time. And his business should do that most weeks this summer. Not a bad return on investment.
I have two businesses that I "invested" around $300K in, that pay me around $260,000 a year. I pay taxes on that, albeit begrugingly.
I am eyeing another business venture now.Last edited by TexasHusker; 06-09-2016, 02:56 PM.Comment
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