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Stock markets investments are regarded as best investment options since it delivers better returns as compared to bonds.
But these returns come on with a risk factor of stock market investments.
So here are major Advantages and Disadvantages of Investment in stock markets:
Returns on investment: Over time, stocks outperform bonds and real estate. Stocks on average return about 10% a year, whereas these other investments generally return at about 5-7%.
Save on Taxes: If you hold a stock for more than a year, your profits (when you choose to sell your stock) are taxed at long-term capital gains rate of 15% instead of your standard tax rate. Money you make from interest in a savings account or CD is taxed at your regular tax rate, which can be as high as 35%. Option of
So here are major Advantages and Disadvantages of Investment in stock markets:
Returns on investment: Over time, stocks outperform bonds and real estate. Stocks on average return about 10% a year, whereas these other investments generally return at about 5-7%.
Save on Taxes: If you hold a stock for more than a year, your profits (when you choose to sell your stock) are taxed at long-term capital gains rate of 15% instead of your standard tax rate. Money you make from interest in a savings account or CD is taxed at your regular tax rate, which can be as high as 35%. Option of
