3 Tax Tricks Savvy Investors Know

Your goal as an investor should be to make money, so the last thing you want is the IRS coming in and grabbing a large piece of the cash you've managed to accumulate. Here are a few tricks experienced investors commonly use to avoid losing too much of their profits to taxes.

Buying stocks and holding them for a long time is a great strategy for growing wealth. But in some cases, you may feel compelled to sell a stock sooner.

If that's the case, do yourself a favor and aim to hold that stock for at least a year and a day. If you do, you'll bump yourself into a more favorable tax category if you make money by selling that stock at a profit.

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Source Fool.com