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Jodie M. Smith

Financial Advisor

 

Southeast Financial Wealth Management

5110 Maryland Way, Suite 100

Brentwood, TN 37027

 

Phone:    615-371-3737

Fax:        615-377-0090

TollFree: 800-521-9653, ext. 2321

 

Email: jodie.smith@southeastfinancial.org

May/June 2024

More Income on Fixed-Income Investments

More Income on Fixed-Income Investments

Be aware of the increased income you may be earning on bonds and other fixed-income investments this year. After all, higher returns mean higher income and potentially higher taxes.


Example: If you’re in a 30% marginal tax bracket, and you’ve earned an additional $3,000 of interest income so far this year, that’s an extra $900 of income tax you might not have planned on—and just for the first half of 2024.


Depending on the type of fixed-income investments in your portfolio, your potentially higher returns on them in 2024 could be enough to bump you up a tax bracket. Also, a bracket bump plus higher returns potentially exposes you to estimated tax penalties and possibly alternative minimum tax.* As with any tax planning, be sure to consult a tax professional.


*This is a hypothetical example and is not representative of any investment strategies. Actual results may vary.

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Jodie Smith is a financial advisor with, and securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. Southeast Financial Credit Union and Southeast Financial Wealth Management are not registered as a broker-dealer or investment advisor. Registered representatives of LPL offer products and services using Southeast Financial Wealth Management, and may also be employees of Southeast Financial Credit Union. These products and services are being offered through LPL or its affiliates, which are separate entities from and not affiliates of, Southeast Financial Credit Union or Southeast Financial Wealth Management. Securities and insurance offered through LPL or its affiliates are:

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