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Tom Meaglia, ChFC®, AEP®,

CLU®, CRPC®, MSFS

Chartered Financial Consultant

Investment Advisor Representative

Chartered Retirement Planning Counselor

CA Insurance Lic. #0567507

 

Meaglia Financial Consulting

2105 Foothill Blvd., #B140, La Verne, CA 91750

 

Toll Free: 800-386-3700

Bus:         909-593-6105

Cell:         818-681-8600

Fax:         909-593-6120

 

Email: tom@meagliafinancialconsulting.com

Website: www.meagliafinancialconsulting.com

May/June 2024

More Income on Fixed-Income Investments

More Income on Fixed-Income Investments

Be aware of the increased income you may be earning on bonds and other fixed-income investments this year. After all, higher returns mean higher income and potentially higher taxes.


Example: If you’re in a 30% marginal tax bracket, and you’ve earned an additional $3,000 of interest income so far this year, that’s an extra $900 of income tax you might not have planned on—and just for the first half of 2024.


Depending on the type of fixed-income investments in your portfolio, your potentially higher returns on them in 2024 could be enough to bump you up a tax bracket. Also, a bracket bump plus higher returns potentially exposes you to estimated tax penalties and possibly alternative minimum tax.* As with any tax planning, be sure to consult a tax professional.


*This is a hypothetical example and is not representative of any investment strategies. Actual results may vary.


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Thomas Meaglia is an Investment Adviser Representative of Coppell Advisory Solutions LLC, dba, Fusion Capital Management, a registered investment adviser that only conducts business in jurisdictions where it is properly registered, or is excluded or exempted from registration requirements. Registration as an investment adviser is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability. The firm is not engaged in the practice of law or accounting.
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