fbpx

Learn what investments are exempt from taxes in the United States and how they work

Posted by on

There are certain types of investments in the United States that have low tax rates or even no tax rate (known as Tax-free investing), that many Brazilians ignore. To talk about, Drummond Advisors held a webinar that addressed major investments with low taxation. Bruno Drummond, Drummond Advisors’ partner and Samuelson Drummond, tax advisor, participated in the event.

The first investment addressed was “Individual bonds”, which is a bond from a specific corporation, where you lend an agreed value to such corporation.  Samuelson stressed that the future scenario for bond investors is positive, but, at the moment, it is not very appealing.

“We expect an increase in interest rates and I believe that, within maybe 4 to 6 months, we will have a very interesting scenario for the purchase of bonds, since rates will be more appealing than they are today. The bond investor is currently suffering a bit, since the price on bonds is inversely proportional to the interest rate, so bond prices have been dropping.”

Next, the subject addressed was “Unit investment trusts” (UITs), an investment fund that can be defined as a package with 15 to 30 bonds. Samuelson emphasized that this type of investment is interesting to those who intend to build a long-term “portfolio”.

“These bonds mature over time, you earn interests, earn principal and that is good for those who wish to build a portfolio. Knowing that the repayment on this portfolio will take place in the long-term”. However, he mentioned that that is not the most traditional way to purchase bonds. “My investors usually prefer individual bonds and Mutual funds [..] and ETFS”, he added.

Later in the event, Bruno and Samuelson highlighted other types of investment, such as Traditional and Roth IRAs, 401(k) and 403(b) and Life insurance. Check out the full webinar on our YouTube channel:

Tax-free investing in the United States: learn how it works


Written by Marcos Ferreira, Content Assistant at Drummond Advisors