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.
In general, there are two different types of dividends â âregular dividendsâ and âqualified dividendsâ. One is taxed far more favorably than the other. A so-called âqualifiedâ dividend is given beneficial tax treatment because it is taxed at a lower more beneficial long-term capital gains tax rate.