Taxes 2014: 1 Smart Move You Shouldn't Wait to Do

As the end of the year approaches, now's the time when most people start thinking about ways to save on their taxes in April. But with one popular strategy to cut taxes, it makes sense not to wait any longer than you have to -- and it's not even too early to start thinking about using it as soon as possible in 2014.

In the following video, Dan Caplinger, The Motley Fool's director of investment planning, discusses the tax-saving method of contributing to retirement accounts such as IRAs and 401(k)s. Dan notes that many people wait until the last possible minute to contribute money toward their retirement, but doing so causes them to miss out on some tax-saving tactics. Dan goes through a couple, noting the advantages of getting high-dividend-yielding investments Annaly Capital (NYSE: NLY  ) and ARMOUR Residential (NYSE: ARR  ) into the protection of a retirement account as soon as possible. Dan also points out that as companies declare special dividends -- with Boston Properties (NYSE: BXP  ) and Wynn Resorts (NASDAQ: WYNN  ) already having done so -- owning those stocks in IRAs or other retirement accounts can save you from a big one-time tax bill. Dan concludes that the sooner you contribute, the sooner you start saving with retirement account contributions.

What should you put in your IRA?
Once you have an IRA, how should you invest it? Your best investment strategy is to buy shares in solid businesses and keep them for the long term. In the special free report, "3 Stocks That Will Help You Retire Rich," The Motley Fool shares investment ideas and strategies that could help you build wealth for years to come. Click here to grab your free copy today.

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  • Report this Comment On December 10, 2013, at 5:25 PM, anash91 wrote:

    I may sell a bunch of my losers and buy them back for a discounted price as tax season comes.

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Dan Caplinger

Dan Caplinger has been a contract writer for the Motley Fool since 2006. As the Fool's Director of Investment Planning, Dan oversees much of the personal-finance and investment-planning content published daily on With a background as an estate-planning attorney and independent financial consultant, Dan's articles are based on more than 20 years of experience from all angles of the financial world.

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Related Tickers

4/17/2014 4:02 PM
ARR $4.15 Up +0.02 +0.48%
ARMOUR Residential… CAPS Rating: ****
BXP $117.43 Up +0.54 +0.46%
Boston Properties,… CAPS Rating: *
NLY $11.25 Down -0.16 -1.40%
Annaly Capital Man… CAPS Rating: ***
WYNN $208.00 Up +3.00 +1.46%
Wynn Resorts, Limi… CAPS Rating: **

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