Hi,
Can I get some links or references that will help me to figure out how taxation for mutual funds, specifically index funds, usually works?
I'm trying to run up Excel calculations for increasing net worth that take into account the fact that my taxes will go up as my dollars compound, but I am getting lost when I try to figure out what tax rates to apply to dividends/capital gains/regular income. Even if I flatten out the average gain to a simple X% value, there still has to be some way of accounting for capital gains vs. dividends when I figure taxation, right? Or... not right? I am kind of lost on this, and the more searching I do, the less information I seem to come up with. I keep finding websites that want to explain the concept of tax efficiency - and I get the idea that high turnover results in high capital gains and higher taxes - but that information does not give me any numbers to work with.
Anyone have some good references to pass my way? It would be much appreciated.
Can I get some links or references that will help me to figure out how taxation for mutual funds, specifically index funds, usually works?
I'm trying to run up Excel calculations for increasing net worth that take into account the fact that my taxes will go up as my dollars compound, but I am getting lost when I try to figure out what tax rates to apply to dividends/capital gains/regular income. Even if I flatten out the average gain to a simple X% value, there still has to be some way of accounting for capital gains vs. dividends when I figure taxation, right? Or... not right? I am kind of lost on this, and the more searching I do, the less information I seem to come up with. I keep finding websites that want to explain the concept of tax efficiency - and I get the idea that high turnover results in high capital gains and higher taxes - but that information does not give me any numbers to work with.
Anyone have some good references to pass my way? It would be much appreciated.