If you’ve followed us for any length of time, you know how we feel about IRAs and 401(k)s. They are great, but hardly the only game in town, especially if you don’t want all your money tied up until you are 59.5. That’s where tax-managed investing might come in handy. Investments are a great source of residual income, but there is a lot of mystery and fear surrounding investments.
That’s why we wanted to do a deep dive in this episode. Tax-managed investing isn’t new. It’s been around for a while. But it has recently gained a lot of popularity. As consumers and advisors become more and more tax-conscious, we wanted to dig into this topic so you have a starting point for knowledge on what can seem like a tricky subject.
Why would you choose this strategy (or set of strategies) in addition to an IRA or other retirement accounts? How do taxes affect the rate of return on my investments in a given year? Find out the answers as we tackle these questions and more.
What You Will Learn in this Episode:
- How to leverage tax-managed investing instead of or along with traditional retirement accounts
- How money managers are able to mitigate tax liability within portfolios
- What tax loss harvesting is
- Why we focus on clients and hire experts to manage portfolios
- The differences between short-term and long-term holdings
- How to use dividend-paying stocks along with tax-managed investing strategies