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Efficient Investing Management

Tax-Efficient Investing

Have you spent your whole live reluctantly managing your million dollar portfolio? Is it time to simplify and improve performance?

Tax-efficiency and a clear strategy can help. Tax-efficient investing involves structuring your investment portfolio in a way that minimizes the taxes you pay on investment returns. Here are some specific things that are done, sometimes all at once:

  • Invest in tax-advantaged accounts like 401ks, IRAs, or Roth IRAs. These can help diversify your current and future tax liability. 

  • Consider asset location within certain account types. It is more than just buying investments. It is about putting them in the right tax allocation.

  • Use tax-efficient investments. Some investments can reduce unexpected taxation from distributions or create tax-free distributions.

  • Avoid frequent trading. This can create unnecessary tax ramifications and can sometimes reduce long-term performance. 

  • Harvest losses to reduce future taxes on gains or reduce current year income. 

See our management process within the larger retirement planning picture

Investment Management Process

  • Step One: Define your goals

  • Step Two: Dedicate time to achieving those goals

  • Step Three: Understand your tolerance for risk and your emotional stance on volatility

  • Step Four: Clearly define an investment strategy

  • Step Five: Review current investments and your Retirement Program

  • Step Six: Continually monitor and evaluate your investments

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