Procrastination is a silent and slow killer of savings. Everyone puts things off, of course, waiting until the last minute and then scurrying to finish a longstanding to-do list. Taken to extremes, this course pulverizes your long-term financial plans.
Dividends and interest are the two major types of income investors can receive. The distinction between dividends and interest is determined by what type or classification of investment pays the income. Dividends and interest also have different tax consequences for both the receiving parties and the paying entities.
Starting in 1985, dividends would begin an 18-year period of being fully taxed at an individualâs income tax rate (the highest rate varied from 28% to 50% over this period). Then in 2003 the Bush tax cuts came into effect, thus lowering qualified dividend tax rates to 15%.