There may be liberty and justice for all, but there are tax breaks only for some-Martin A. Sullivan

Life's necessities include food, clothing and shelter. Since this is a tax tabloid what about tax shelters and tax planning? Without adequate protection, the returns earned by an investor can be greatly reduced by the ravages of the tax code. In making investment decisions you must not only assess the risk and return but also the tax consequences associated with the investment. Tax effects greatly depend on one's "tax bracket" therefore it is important to choose investment strategies that provide the maximum after-tax return for a given risk. This part of tax planning involves the formation of strategies that can reduce, exclude or defer the amount of taxes to be paid. Knowledge of the various investment vehicles and strategies available for legally reducing one's tax liability are fundamental to obtaining the highest after-tax returns for a given level of risk.