8 Tax Mistakes You Can’t Afford to Make: Annaly Capital Management, Inc. (NLY), American Capital Agency Corp. (AGNC)

Recommendation: When possible, opt for longer holding periods, since the capital gains rate you pay depends on how long you held the investment.

Hold an investment less than a year, and you’ll pay your ordinary rate of as much as 39.6% this year.

Hold it more than a year, and the maximum is 20%, with many taxpayers paying lower rates of 15% or even 0%.

Bottom line: Long-term investing can be rewarding.