Skip to main content

Managing your investment taxes

When it comes to investing, nothing's certain but taxes. Find out what they are, how to keep them low, and how to report them.

How investments are taxed

The good news: Your investments made money! The not-so-good news: You owe taxes.

We'll explain the different tax treatment for dividends, capital gains, and interest.

How to lower your taxes

If taxes are a concern for you, you have several options to keep them under control. Choosing accounts with tax benefits, buying investments that are prone to a lower tax bite, and making strategic moves before year-end can help cut your tax bill.

How to report your taxes

Tax time! Filling out your tax return with the right information about your investments can seem daunting, but we'll help you understand what all these forms are about.


Get complete portfolio management

We can help you custom-develop and implement your financial plan, giving you greater confidence—and potentially a lower tax bill.

Saving for retirement or college?

Take advantage of tax breaks just for you! See guidance that can help you make a plan, solidify your strategy, and choose your investments.

Already know what you want?

From mutual funds and ETFs to stocks and bonds, find all the investments you're looking for, all in one place.

REFERENCE CONTENT

Layer opened.

Dividend

The distribution of the interest or income produced by a fund's holdings to its shareholders, or a payment of cash or stock from a company's earnings to each stockholder.

Layer opened.

Capital gain

An increase in the value of an investment over the initial purchase price. A capital gain is "unrealized" until the investment is sold, when it becomes a realized gain. Realized gains are taxable and they may be considered short-term (if the investment was owned one year or less) or long-term (if the investment was owned for more than one year).

Layer opened.

Interest

Income you can receive by investing in bonds or cash investments. The investment's interest rate is specified when it's issued.