One Aspect of the Tax Considerations in Asset Allocation Is

question 43

Multiple Choice

One aspect of the tax considerations in asset allocation is that:

• A) capital gains are often taxed at a higher rate than dividend and interest income.
• B) Roth accounts offer a tax savings in the year they are opened.
• C) investors are exempt from taxes on capital gains once they reach age 65.
• D) taxes on capital gains are deferred until the gain is realized.

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Definitions:

Social Competence

The ability to interact effectively with others, understanding social cues, and responding appropriately to social situations.

Scripts

Predefined sequences of actions or behaviors that individuals follow in specific situations.

Cry

A physical response involving shedding tears in reaction to an emotional state, such as sadness, happiness, or pain.

Cook

The process of preparing food by combining, mixing, and heating ingredients.