“Thanks for the tax information - it helped a great deal. I was lost.” - Cindy N
Quotes
Taxes
"Next to being shot at and missed, nothing is really quite as satisfying as an income tax refund.” — F. J. Raymond, humorist
"The best measure of a man's honesty isn't his income tax return. It's the zero adjust on his bathroom scale.'' — Arthur C. Clarke, author
“The hardest thing in the world to understand is the income tax.” — Albert Einstein, physicist
"On my income tax 1040 it says 'Check this box if you are blind.' I wanted to put a check mark about three inches away." - Tom Lehrer
" I'm proud to be paying taxes in the United States. The only thing is—I could be just as proud for half the money." - Arthur Godfrey
"Ever wonder why the IRS calls it Form 1040? Because for every $50 that you earn, you get 10 and they get 40." - anonymous
"It's income tax time again, Americans: time to gather up those receipts, get out those tax forms, sharpen up that pencil, and stab yourself in the aorta." - Dave Barry
Taylor Larimore, one of the authors of The Bogleheads' Guide to Investing, a top dog at the diehards forum and a consumate gentleman gives us this (and I suggest you print it):
4-Step Rule for Tax Efficient Fund Placement:
1. Put your most tax-inefficient funds in 401ks, 403bs, Traditional IRAs and similar retirement accounts. When full..
2. Put your next most tax-inefficient (usually highest-returning) funds in your Roth. When your Roth is full..
3. Put what's left into your taxable account.
4. Try to use only tax-efficient funds that you can hold 'forever' in taxable accounts.
Below is a list of securities in approximate order of their tax-efficiency. (Least tax efficient at the top.):
Hi-Yield Bonds
Taxable Bonds
TIPS
REIT Stocks
Balanced Funds
Stock trading accounts
Small-Value stocks
Small-Cap stocks
Large Value stocks
International stocks
Large Growth Stocks
Most stock index funds
Tax-Managed Funds
EE and I-Bonds
Tax-Exempt Bonds
