The goal of investing is to have your assets appreciate at a higher rate than your money would sitting in a savings account. Many consider a “good” investment to be around 7% per year, based on the S&P 500’s historical average return, adjusted for inflation.
But what if your goal is an even higher return, such as 10% or more? While no investment is guaranteed to secure that significant of a return, many investments have and are likely to continue to do so in the future.
Currently, you pay no taxes on long-term capital gains if your income falls below $40,400. If you earn more than that, but less than $445,850, you pay 15% of your gains. If you earn a higher income, those gains get taxed at 20%.