Looking To Avoid Higher Tax Rates? Why Fixed-Income Investments are Subject to Higher Tax Rates

Benzinga
Benzinga
  • last year
As interest rates rise, Americans turn to fixed-income investments like bonds and money market funds. However, experts warn that higher taxes may be a consequence. The increase in interest rates benefits savers but hurts borrowers. Fixed-income investments are generally low-risk and provide regular payouts, but they are taxed at higher rates than stocks. Investing in government-backed securities or municipal bonds can help minimize tax impact. Investing in fixed-income assets through nontaxable retirement accounts can also avoid taxes.
Transcript
00:00 It's Benzinga and here's what's on the block.
00:02 As interest rates rise, Americans are turning to fixed-income investments like bonds and
00:06 money market funds.
00:07 However, experts warn that higher taxes may be a consequence.
00:12 The increase in interest rates benefits savers but hurts borrowers.
00:16 Fixed-income investments are generally low-risk and provide regular payouts, but they are
00:20 taxed at higher rates compared to stocks.
00:23 Investing in government-backed securities or municipal bonds can help minimize tax impact.
00:29 Investing in fixed-income assets through non-taxable retirement accounts can also avoid taxes.
00:34 For all things money, visit Benzinga.com.
00:36 [BLANK_AUDIO]

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