One issue that often concerns investors is whether it would be best to make short-term investments at higher interest rates. The drawback of this investment strategy is that, once the capital gains tax is imposed, you are more likely to earn less profit than you might have expected. The reality is that long-term investments save more on capital gains taxes. A long-term investment is usually taxed at a lower rate and you often pay no taxes on your capital gains, provided you are in the right tax bracket.
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