The term "investor protection" defines the entity of efforts and activities to observe, safeguard and enforce the rights and claims of a person in his role as an investor. The assumption of a need of protection is based on the experience that financial investors are usually structurally inferior to providers of financial services and products due to lack of professional knowledge, information or experience.
Countries with stronger investor protections tend to grow faster than those with poor investor protections.
Alternatively, in another country having a double-taxation treaty with the USA, accepted by the IRS;.
Non-qualified dividends paid by other foreign companies or entities; for example, those receiving income derived from interest on bonds held by a mutual fund, are taxed at the regular and generally higher rate of income tax.
This is countered by the opinion that after-tax returns should be considered, especially during retirement, on the basis that allocation to equities is in general, lower, than any returns and should be maximized, to the most lucrative extent.
In the current circumstances, long-term capital gains offer one of the best opportunities in the United States tax structure.
When applied to 2013, this is on a sliding scale up to 39.6%, with an additional 3.8% surtax for high-income taxpayers (0,000 for singles, 0,000 for married couples).
A disciplined and structured investment plan prevents emotional investing which can be related to impulsive buying.
While a tax structure may change, it is generally accepted that long-term capital gains will maintain their position of providing an advantage to investors.
An individual investor may be protected by the strategy he uses in investment.
The strategy includes an appropriate price of the stocks or assets in the right time he enters.
Investor discipline is the ability to maintain an investment strategy even in the most tempting, or extreme conditions in the marketplace.
An established and popular method for stock market investors is Systematic Investment Plans (SIPs) especially for those who have a regular, monthly surplus income.
It is made easier for investors to generate long-term capital gains by the employment of exchange-traded funds (ETFs); the process if investment in broad-based index funds, without required indicators.