Investment income is money earned by your financial assets or accounts, and understanding how it works can help maximize your profits.
All investing is ultimately about income — making money. Of course, depending on your investment strategy, sometimes the money comes in later (if you’re investing for appreciation) and sometimes sooner (if you’re aiming for immediate funds).
Whatever your approach — whether you try to time the markets for a quick hit or take more of a long-term, buy-and-hold view — it’s important to understand the different types of investment income, and how they are taxed.
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