Strategies for Lowering Investment Taxes
Choosing investments with built-in tax efficiencies helps you minimize returns lost to taxes. We recommend using EFTs as a foundation in most portfolios for the tax advantage. Due to the way the transactions settle, you can usually avoid triggering Capital Gains.
Look for Opportunities to Offset Gains
- You’re only taxed on net capital gains, so any realized losses can help lower your tax bill.
- If you know you’re going to have realized gains, look for opportunities to realize losses and offset them.
- For example, if you have shares of stocks that have lost value since you purchased them, you may consider selling them.
Divide assets among the right types to hold your investments.
Taxable accounts should hold tax‑eﬃcient assets like:
Index mutual funds
Nontaxable accounts should hold less tax‑eﬃcient assets like:
Actively managed mutual funds
If you have questions or would like to speak with one of our tax professionals about your situation.