Coming to terms: long-term investing
Q: I have heard an advice that you should invest in stocks for the long term. Just how long is that?
A: For tax purposes, you should aspire to hang on for at least a year and a day, so that any profits qualify for the long-term capital-gains rate, which is currently 15% for most of us. (Short-term gains, from holdings of a year or less, are taxed at your ordinary income rate.)
In general, most investment professionals say you should aspire to hold on for at least several years, if not many years - as long as the company stays healthy and growing, and as long as its stock has not gotten way ahead of itself. Many fortunes have been borne by people who invested in various companies for decades.
The Motley Fool
VIA Qondio
Keyword: Stock investing
Q: I have heard an advice that you should invest in stocks for the long term. Just how long is that?
A: For tax purposes, you should aspire to hang on for at least a year and a day, so that any profits qualify for the long-term capital-gains rate, which is currently 15% for most of us. (Short-term gains, from holdings of a year or less, are taxed at your ordinary income rate.)
In general, most investment professionals say you should aspire to hold on for at least several years, if not many years - as long as the company stays healthy and growing, and as long as its stock has not gotten way ahead of itself. Many fortunes have been borne by people who invested in various companies for decades.
The Motley Fool
VIA Qondio
Keyword: Stock investing
