Most individual investors make investment decisions based purely on future expected returns and consider the tax consequences of their financial moves only after the fact. However, if you want to truly maximize your investing returns, you should be thinking about taxes throughout the year as part of your investment process—not just in the days and weeks before you file your tax return. That's why, in Tax-Efficient Investing, Wall Street veteran Reto R. Gallati offers investors solutions they can start implementing immediately to help maximize their after-tax returns. An indispensable guide to using the Internal Revenue Code to your benefit, instead of allowing it to wreak havoc on your long-term earnings and savings, Tax-Efficient Investing provides investors with the basic framework for understanding individual taxation as it relates to investing. After discussing the various components that make up a robust investment strategy, Tax-Efficient Investing then describes the tax consequences of a wide range of asset categories, from stocks to mutual funds to municipal bonds. It also reveals the simple steps you can take to become a more tax-efficient investor.
A comprehensive road map for creating a tax-advantaged investment strategy, Tax-Efficient Investing will teach readers how to:
- Differentiate between tax-advantaged portfolios and tax-efficient portfolios;
- Allocate assets among investments that have different tax treatments under the tax code;
- Utilize tax structures provided by the tax code, such as 401(k)s, Roth IRAs, 529 college savings plans, and more, to maximize your long-term investment returns;
- Intentionally realize investment gains and losses.
Every investment decision you make has a tax consequence, but fortunately, taxation can at least be minimized. With Tax-Efficient Investing as your guide, you will be able to make better and more informed tax-related decisions while managing your portfolio and, rather than fear taxes, use them as a factor to help generate sustainable investment returns.