Some funds are very tax conscious and some aren't. You didn't say what kind of fund (stock or bond) so we can't help you with any specifics. You can look at the mutual fund's website and it will show you past distributions so you can get a general idea of what to expect.
In any case, unless you've got a fund that buys and sells it's assets a lot I can't imagine much of a distribution on an $800 investment. Probably less than $25 which would make your tax anywhere from $0 to $10.
If you want to avoid tax altogether you can keep that money in the same mutual fund but in a Roth IRA. Anything you make on it will be tax-free FOR LIFE including when you withdraw it past your retirement age (or for a first-time home purchase).
Nope. Worry about Global Warming or the Dallas Cowboys winning the Super Bowl. None of the above will amount to much.
You will receive a 1009-DIV or 1099-INT for any taxable dividend or interest income. I wouldn't worry because it'll be a very small amount if any.
I wouldnt go to lending club with 800.00 because you need to diversify among many loans. Lending money mean dealing with people that do not pay their loan...Think about it... You have to pay taxes on your mutual fund holdings.
Best of luck
I'm a college student with no income. I had some saving and recently opened a Scottrade account and invested $800 on mutual funds. It's my first time investing so I start with a small amount. I want to have a long term investment for my future. I read about taxes on mutual funds and am worried that I would have to pay tax on mine. My investment is small and I dont want to pay more tax than what I earn from mutual funds. Should I be worried about tax on mutual funds at all even if I dont sell them ?
I was thinking about withdraw money from scottrade and invest in Lending CLub instead. Is it a good idea?
Thank you
