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Tax-Efficient Investing

June 07, 2023

Managing your investment accounts with tax efficiency in mind is essential to save more money and maximize your investment returns. This is especially crucial in today's economic climate.

Investing in tax-advantaged accounts like IRAs, 401(k)s, and Roth IRAs can help you achieve tax efficiency and grow your investments over time.

If you have taxable investment accounts, it's crucial to consider the tax consequences of selling investments with increased value. This may result in capital gains taxes that can be reduced by investing in options like exchange-traded funds (ETFs) and separately managed accounts (SMAs). You can use tax overlay managers to balance your investment portfolio's profits and losses to minimize your tax liabilities further. Harvesting losses, if you can, is also a good idea, which will offset any gains in your taxable accounts.

When making withdrawals, it's crucial to understand how each of your accounts is taxed. This knowledge can impact the taxability of your social security income or potentially move you into a higher tax bracket. Familiarizing yourself with the varying tax treatments of IRAs and long-term gains in taxable accounts can prove advantageous when filing your tax returns.

If you want to learn more about tax-efficient investing, don't hesitate to contact our office for assistance. Click Here - To schedule time to speak with Richard.