If you’re buying, selling, trading, or earning cryptocurrency, it’s important to understand how it’s taxed and what you might owe. Here’s everything you need to know. When do you pay taxes on crypto? You generally owe taxes when you sell cryptocurrency for more than you paid for it. This also applies when you exchange one digital asset for another. Converting bitcoin into ethereum, for example, isn’t “just a trade” in the eyes of the IRS. It’s a taxable event if the value changes. Crypto taxes aren’t ...

An options strategy called a "box spread" is gaining steam by the billions as an alternative to Treasury bills and traditional loans. The tactic gets its name from the four-sided structure of options trades that simultaneously bet on calls and puts at strike prices for securities at a reliable spread. Potential tax and lending advantages are driving the appeal of box spreads, according to Brent Sullivan, a consultant on product distribution to sub-advisory and ETF firms. He's the author of the Tax Alpha I ...

Core Insights - The article discusses the balance between investing in individual stocks versus index funds, emphasizing that while individual stocks can be appealing, they are generally more volatile and risky [1][6][18] Group 1: Individual Stock Investment - A significant portion of low- and moderate-income Americans, 54%, are investing in capital markets, with a preference for individual stocks over mutual funds and ETFs [3] - Investment experts recommend starting small when investing in individual stocks, suggesting that only a small percentage of a portfolio should be allocated to them, especially for retirement savings [5][6][7] - It is advised to avoid overconcentration in any single stock, with a guideline that no single position should account for more than 5% to 10% of the overall portfolio value [9][10] Group 2: Diversification Strategies - Diversification is crucial, meaning holding different types of assets across various sectors and markets, which can mitigate risks associated with individual stocks [12][13] - Experts suggest that investors should own at least 25 diversified stocks to spread risk, while others recommend focusing on 5 to 10 stocks with a strong track record [14][15] - The article highlights that many individual stocks may underperform, and it is the few successful investments that will drive overall returns [20] Group 3: Market Performance Expectations - The article notes that actively managed funds often underperform the market, and this trend applies to amateur stock pickers as well [17][18] - Investors should not expect to consistently beat the market by selecting individual stocks, as many will not perform well [19][20]

Core Insights - The article emphasizes that individuals with average salaries can utilize financial strategies similar to those employed by the wealthy to enhance their financial situation [1][2]. Group 1: Financial Strategies - **Bank Bonus Harvesting**: Moving $5,000 between banks offering new account bonuses can yield annual earnings of $1,000 to $2,000, with major banks like Chase and Citi providing bonuses ranging from $200 to $500 for new accounts [3]. - **Credit Card Reward Stacking**: Combining a 2% cash-back card with targeted 5% category cards can generate over $1,200 annually on a $30,000 spend, with strategic sign-up bonuses adding another $1,000 to $1,500 [4]. - **Tax-Loss Harvesting**: Selling underperforming investments to offset capital gains taxes can benefit anyone with a diversified portfolio, especially during volatile market periods, potentially offsetting $3,000 in ordinary income yearly [4][5]. Group 2: Property Tax Strategies - **Property Tax Appeals**: Filing an appeal using comparable sales data can reduce property assessments by 5-15%, saving $300 to $900 annually on a $300,000 home with a 2% tax rate, a strategy also used by wealthy homeowners [5].