By Leanna Kelly It’s always nice to see positive gains in your portfolio. But what you’re looking at isn’t actually accurate—at least, not until you factor in taxes. What is the after-tax real rate of return for your investments? It’s an important question every investor needs to ask themselves. You might be surprised to learn that taxes (and time) can take a big chunk out of your ROI.
To understand the after-tax real rate of return, it’s important to see beyond the numbers in your portfolio. Instead, consider what happens after you exit your position and take your gains. Before that money goes …read more
