Weekend Reading: Five Things to Evaluate in a Tax-Managed Investment Strategy

This article appears as part of Casey Weade's Weekend Reading for Retirees series. Every Friday, Casey highlights four hand-picked articles on trending retirement topics and delivers them straight to your email inbox. Get on the list here.
Weekend reading tax managed strategy Weekend reading tax managed strategy
Weekend Reading

Albert Einstein once said, “The hardest thing in the world to understand is the Income Tax.” Beyond being complicated, there is no way to avoid Uncle Sam’s share of your appreciated assets.


However, you can learn how to strategically manage your taxes in the most efficient way that pertains to your unique financial situation. It begins with remaining proactive.

Taxes top of mind: Here, you will find five ways to help ensure you’re on track to tax-minimization. Some of the most prominent questions to ask yourself include:

📌 Is the end goal the lowest possible taxes or more after-tax wealth? Don’t let the tax tail wag the dog. A long-term tax managed strategy should focus on both tax-minimization and after-tax wealth, so that more dollars end up in your pocket.

📌 How are assets selected, allocated and optimized? Limiting exposure to less tax-efficient asset classes, considering a mix of active and passive funds and utilizing a “flexible bond-positioning strategy” can all lend to a diversified, tax-prioritized portfolio.

📌 How is tax-loss harvesting managed? Opportunities for tax-loss harvesting should be considered throughout the year, even beyond times of market volatility, with the priority to lower taxes in the current year or in the near future.

A tax plan worth pursuing: No matter your goals, no matter your net worth, there will always be value found in a tax-managed investment strategy.