May 31, 2008
Stock and option trading - The question is, "Should this excess or higher rate be invested in something other than insurance policy savings, since at best the savings work out to about 4% per annum compounded annually?
" The answer must lie with the investor after he reviews other investment opportunities open to him. As in all things, balance should prevail. The law makes certain tax allowances for a person's charitable contributions in an effort to promote these contributions. These allowances plus the benefits of an annuity combine to return a good yield to certain investors under certain circumstances”but not to everyone. Furthermore in some cases the actual yield in percentage is hard to compute; but let us explain certain moves an investor can make to utilize contributions as well as the annuity: In the first place the tax laws allow a person to deduct from his income which is subject to taxation, a charitable contribution of up to 30% of his taxable income. Thus a person who has an income of $200,000 per year can contribute $60,000 to charity and have this $60,000 deducted from his $200,000 income before the tax is applied.
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