Working can only take an individual so far. If you really want to make money, you will have to look at some sort of investment portfolio. Like every other method of making money, though, investment can be complex. It is so complex, in fact, that there are particular laws that govern investment, and particular sections of the tax code that govern its profits. If you wish to to make money out of such endeavors, it is wise to familiarize yourself with the legal and tax consequences of making any sort of investment on your own.
The bulk of investment law deals with the “who”, “what”, and “how” of investing. Laws exist to determine, for example, who can make a particular sort of investment, what kind of investments may be made and the mechanisms by which investments can be made. These laws largely exist to protect both the investors and the investment, but they also exist to protect the rest of the marketplace from illicit dealing. Even novices are aware of terms like “insider trading”, which itself is a crime based on a set of laws that exist solely to make sure that the marketplace runs fairly and cannot be manipulated by those in positions of trust.
At the same time, investment law also largely concerns how windfalls from investments will be taxed. The American tax code is particularly complex, but investment income puts most of the other income types to shame. Investment tax laws not only determine the rate at which an investment will be taxed, but how and when. It can be incredibly difficult for a novice to understand not only how much he or she will be charged when an investment pays off, but when that payment will be due and how it must be paid.
Investment law is particularly complex, and always requires outside help to understand. As investments may be made in anything from shares in a business to raw materials, working with an investment lawyer that understands the particulars of your own investments is a necessity. It takes time and effort to make sure that your investments pass muster before the law, and perhaps more to make sure that your investments will not trigger dire tax consequences. With a bit of help and understanding of both the tax code and the general laws of the topic, though, one can make worthwhile investments and turn a profit.