Mutual Funds, Stocks and Bonds

As an investor in a mutual fund, you become a shareholder in a large portfolio of stocks, bonds and/or money market securities (or some combination of them). Investing in stocks and bonds can be a good way to achieve long-term capital growth, but the market risk can be substantial. Consider subscribing to financial magazine or taking a course to learn more about these options.

Although investments in mutual funds, stocks and bonds provide no current tax benefit, qualified dividends and capital gain distributions are taxed at a maximum rate of 15% and your other income is taxed at a maximum rate of 35%. For 2009 and 2010 these amounts are taxed at a 0% rate to the extent your taxable income is below the end of the 15% bracket.


  
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Laws on this topic may vary from state to state. This content is not meant to provide you with complete information and it is not intended to be legal or tax advice. It is recommended that you consult with your own attorney, accountant or other advisor regarding your specific situation.