3. Remember to benefit from low rates on dividends as well as long-term capital gains
Did you know that long-term capital gains and qualified dividends are actually subject to tax at lower rates? In fact, investors rely on these breaks even in their golden years.
As a general rule. if you find yourself in the 10 percent (or 15 percent) tax brackets that translate to ordinary income purposes, you will most likely benefit from a tax-free treatment when it comes to capital gains and dividends.
P.S.: Don’t make rash decisions when it comes to selling your investments. Calculate everything first! If you’re aware of every possibility, you might end up with quite big tax savings after all.
