New Tax Bill Agreement

by Brion Lau

Today, CNN Money released an article, “Tax Bill Agreement Reached”.

Key highlights in the measure include:

• Extensions to the reduction in [tag]capital gains[/tag] and [tag]dividend tax[/tag]
• Provisions to relieve millions of middle class Americans from the Alternative Minimum Tax ([tag]AMT[/tag])
• Conversion clause for Traditional IRA to [tag]Roth IRA[/tag]

Personally, I think this bill is good news for those of us trying to build and accumulate [tag]wealth[/tag]. First, if you have stock and/or real estate investments, the reduced tax is a benefit you already have. This bill will extend the benefit time frame. Second, AMT relief is sorely needed because individuals may have to pay more taxes when hit with the AMT. Finally, Roth IRAs are great because the earnings are tax free–not tax deferred as is the case with Traditional IRAs. Roth IRAs are a great [tag]retirement[/tag] investment vehicle and should be a part of your wealth plan.

I encourage all of you to become familiar with the proposals and how it will affect your individual situation. Also, don’t forget to take action so you can benefit from the new bill when it is passed.

Here’s to your wealth and success!