Many years ago a Mutual Fund company was advertising with the tag line “It’s not what you make, it’s what you keep.”
Of course, they were referring to investment returns and how they can potentially be reduced by taxes.
Any investment strategy requires Tax Sensitive or Tax Efficient Investing.
This strategy could include choosing Mutual Funds with lower turnover or choosing passively managed ETFs and Index Funds which would have less tax disadvantages.
This could include the type of Mutual Fund or ETF such as investing in Municipal bonds or growth stocks which would be held for the long term.
You are not alone when facing these critical decisions. The professionals at Roventini Financial Services, Inc. of New City, NY provide advice earned from years of tax and investment experience to help guide our clients.