Income taxes on dividends, short-term capital gains, and long-term capital gains can significantly reduce the aftertax return
that a taxable investor earns, relative to the pre-tax return on a mutual fund.
When you make your priority in choosing one investment over another its success in minimising tax rather than maximising aftertax return
, you are failing to see the wood for the trees
The increased loan provisions in absolute amount, nonetheless, depressed aftertax Return
on Assets to 1.
Berkshire pays no dividend because CEO Warren Buffett believes that he can earn a higher aftertax return
by retaining capital than his shareholders could if he paid it out.
A Roth IRA provides investors with a substantially greater aftertax return
than a taxable investment or a nondeductible IRA.
And the gap between pretax and aftertax return
has declined substantially.
on capital set a new all-time record at 30.
The results suggest that investors who are not holding index funds, but who invest through actively managed equity, funds, may improve their aftertax return
by holding equity mutual funds in their tax-deferred account rather than in a taxable account.
Why invest at an 8% aftertax return
and pay 12% on a car loan?
With combined assets of 596 billion rupees, the aftertax return
of these units was just 1.
Since an individual manager can add dramatically to a portfolio's aftertax return
, the client with little in taxable accounts may be slower to realize the advantages of a private manager's services.
It should be noted that when aftertax returns
are required, the tax lot selection will affect the fund's aftertax return