No need to pay taxman twice

The Ticker

June 03, 1998|By Julius Westheimer

HERE ARE THINGS to remember when deciding how to invest your money: "Avoid mutual fund double taxation by keeping records of your reinvested dividends. You pay tax on those dividends every year -- they are included in the Form 1099 the fund sends you. When you eventually sell fund shares and must calculate what you paid, the amount reinvested is part of your cost. If you don't include dividends as part of your cost, you'll pay taxes on them twice -- once in the year they are distributed and when you sell shares." (Randy Blaustein, CPA.)

"If you stash away $2,000 a year in a portfolio that includes a healthy dose of stocks and you earn 9 percent annual total return (gain plus income), you will have $676,000 after 40 years. But if you delay starting for just five years you will have only $431,000, or 36 percent less." (Wall Street Journal.

These Maryland firms are included under "The 100 Best Small Corporations," in Business Week, June 1: Yurie Systems, Landover; OAO Technology, Greenbelt; and Forensic Technology, Annapolis.

"The most expensive words in the investment business are 'It's different this time.' " (John Templeton, veteran mutual fund manager.)

Pub Date: 6/03/98

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