Tax-Efficient Investment Strategies

Smart investing isn't just about returns—it's about after-tax returns. Implementing tax-efficient investment strategies can significantly increase your wealth over time.

Asset Location Strategy

Place investments in accounts that provide the best tax treatment:

• Taxable Accounts: Hold tax-efficient investments like index funds, ETFs, and municipal bonds


• Tax-Deferred Accounts (401(k), Traditional IRA): Hold investments that generate ordinary income like bonds and REITs


• Tax-Free Accounts (Roth IRA): Hold investments with highest growth potential like growth stocks

Tax-Loss Harvesting

Systematically realize losses to offset gains, reducing your current tax liability while maintaining your investment strategy.

Hold Investments Long-Term

Holding investments for more than one year qualifies them for lower long-term capital gains rates (0%, 15%, or 20% vs. up to 37% for short-term).

Consider Tax-Exempt Investments

Municipal bonds can provide tax-free income, which may be especially beneficial for high-income investors in high-tax states.

Minimize Turnover

Frequent trading can generate short-term capital gains taxed at higher rates. A buy-and-hold strategy can be more tax-efficient.

Our investment tax specialists can help you develop a comprehensive tax-efficient investment strategy tailored to your goals.