10 Commandments Of Long Term Investing (10 of 10)

Commandment X: Always Pay Less Tax - Avoiding losses due to taxes is a vital part of investing. It often means making decisions to part with more money for more growth, or less money for less growth, but in reality often mixes somewhere in between. Investing in individual stocks, rather than a money market portfolio, allows individual losses to be used as tax shelters for other gains. Equities should not be selected, however, for the sole purpose of tax efficiency, but to meet performance goals.