I'm very new to investing. I already have a 401k with my employer. Can I also set up a roth IRA for my long-term investments, and keep another account for dividends?
Yes you can.
how much will i be taxed for any dividends cashed or automatically reinvested? Ordinary dividends will be taxed at the same rate as your wages or most other income. Capital gain dividends (available in mutual funds) are taxed at lower capital gains rates.
Should I set up a separate tax savings account to pay additional taxes for my dividends. Not necessary. Pay the taxes through your withholdings
Currently my husband and I file jointly and I believe we are in the 25% tax bracket. Do you have any suggestions within the law to save on taxes? If you are in the market, consider buying a home. The interest and property taxes allow for some tax benefits once you can itemize.
I also like setting up a small business you can operate from home. You can convert some of your living costs to tax deductions
, and use tax
losses to offset other income.
I would also like to start buying stocks for my 2 year old. Will I be taxed for that? There isn't much of a tax on the little one's investment income until it exceeds $1,900. Once you get to that level, it is taxed like it was your income, and taxed at your rates.
Hope this covers your questions. Thanks from Just Answer.