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A common misconception on investments taxation.


There are so many elements when it comes to the taxation of your investments, but you will find that it’s not as ruthless as friends or a family members warned you about. As a matter of fact, you will understand that the laws overseeing taxation actually make sense and are fair. So let’s talk about them so you can feel safe when you invest.

The biggest misconception about taxation that people have is that you pay taxes for all your investment once you sell your stock. And it couldn’t’ be farther from the truth. The reality is that you only pay taxes on your capital gains, not on your original investment; this is the standard law unless your investment is on some kind of special account.

So if you invest $150,000 and your investment goes well and you make $200,000. When you sell your stock and this investment is taxed at 12%. Under this misgiving you think you end up owing $24,000. But, this is not the way it is. When you sell your stock you will get your initial investment of $150,000 intact, and you will pay the 12% tax only on your capital gain of $50,000. So you will only end up owing $6,000. A huge difference between the $18,000 you thought you had to pay.

Even further, if you make a bad choice and lose $4,000 on a stock, and far ahead that same year you make a great investment and gain $7,000, these 2 dealings will in part offset each other, when netting these transactions, you will only have to pay taxes on $3000 of the $7,000 capital gain. If the amount you lost is superior to your capital gain your losses can offset $3,000 maximum.

There are many elements that you have to take into account when you want to invest, people every so often overlook taxes and only consider them after the fact. But as you can see taxes can have a crucial impact in your investments, but not as big as some people made you think.

Keep in mind that saving and investments are an important part of your financial health. We at Payton Financial are dedicated to ensuring your financial health through different investment types. Talk to a representative today and learn more about your options.

Be one step ahead on your student’s loan plan.


Planning is always a must when it comes to your future, if you want to invest; you should find the right certified investment planner to help you deal with your or your children’s student loans plan today.

According to the Department of Education many borrowers either failed to graduate or earned a certificate or degree with little financial value: Only 56% of borrowers who quit college without a degree are effectively paying off their student’s loan. A senior policy analyst at the Association of Community College Trustees, Colleen Campbell stated that small-balance borrowers (borrowed between $5,000 and $10,000 for their student’s loan) are frequently people who would profit the most from higher education. But because they don’t finish school or don’t earn a degree with high labor market value, they aren’t able to pay their student’s loan.

Research shows according to the White House Council of Economic Advisers, that 35% of those who loaned out less than $5,000 and started repaying loans in 2011 failed to pay within three years, as did 31% who borrowed between $5,000 and $10,000 — and only 4% of those with at least $40,000.

Hillary Clinton has suggested making public college free for families making $125,000 or less, which could help upcoming students dodge leaving school with debt. Several of the popular proposals intended at current borrowers, as well as letting borrowers to refinance loans at inferior rates. And Donald Trump has recognized that student debt is difficult for numerous Americans but didn't present any detailed policy offer.

With this information in your hands, you must gather that aiming high is the best you can do, for you, or your family. Going for a degree with high labor market value. When it comes to student’s loans, you have a great deal of decisions to make once you get your financial aid award letters. Appraise your financial aid packages by comparing proposals and reading the fine print. And there is always the private student’s loan option open just for you.

Invest in your children future.


Your family started to grow, and you have a baby, or a toddler, or a young child, the time to start planning for their future is now. When you can plan ahead of time, and with a well planned investment you can insure your children with have a bright future.

If you talk to your broker he can advise you on several options, and here are just some for you to evaluate: You can start a 529 plan, these are state sponsored, tax sheltered accounts where you and family members can deposit and see grow and stay tax free as long as the money is used for educational expenses, such as; tuition, books, boarding, school supplies and the like. And if your children don’t use all the money you can change the beneficiary to their children.

All states have 529 plans, and you use this invested money in any school in all states. Some states have tax deductions to residents who want to attend college, or want to add it to their 539 plan. If you want to start with the lowest cost supplier of 529 plans, we recommend New York’s 529 plan, which to start only asks for $25, when other plans require at least $3000. If your children get a scholarship, they can withdraw from their account all or some of the money, and they will have to pay taxes, but only on the gains, your main deposit will not be taxed, and also if your child decides not to go to school, they can withdraw too, with some paperwork, and the gains will be taxed at 10%, and again, your mail deposit will not be taxed.

If you feel like using a 529 plan your money will be trapped and not available to your children, then you always have the option of a trust fund. This time you can define what percentage of your deposit will be available to your children and when. For example you can decide that at 25 years, they will get ½ of the amount and the other half once they reach 30. But trust fund does get taxed.

It’s always a good idea to plan for your and your family’s future. Talk to your financial adviser, he/she will help you advising you the best option to save or invest.

How much can I save with Payton?

Payton's periodic contribution accounts make it easy for you to achieve your financial goals. Our calculator can help you visualize your returns based on your contribution amounts.

Go ahead, try it out and see how much money you can save!

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