Help Protect Your Wealth From Tax-Rate Changes

The following article, which is quoted in its entirety, was borrowed with permission from our favorite discount brokerage firm, Fidelity Investments. The link is found at http://publications.fidelity.com/investorsWeekly/application/loadArticle?pagename=VP1003taxchanges fca_id=20100396p03 (http://publications.fidelity.com/investorsWeekly/application/loadArticle?pagename=VP1003taxchanges fca_id=20100396p03)When it comes to taxes, these are particularly uncertain times. Tax cuts enacted in 2001 and 2003 will be expiring soon. And in the face of surging budget deficits, a raft of new tax hikes is being proposed in Washington, the outcome is as murky as the Potomac River. Fortunately, you don't have to play tax-policy roulette to help protect your wealth from tax-rate changes. You can be prepared. A smart tax approach, much like a prudent investment strategy, can help reduce potential negative impacts—regardless of where tax rates are headed. And this can be especially true for your retirement investments.