Tax-Efficient Investing

Planning for the efficient management of the tax consequences of investment decisions can be an important factor in retaining more of the assets you worked hard to build.

Areas of current concern may include:

  • Structuring your investment portfolio in the most tax-efficient manner.
  • Building your estate plan to transfer your wealth with tax-efficiency.
  • Retaining more of your income after-taxes.
  • Optimizing distributions from your retirement accounts.
  • Determining a draw-down strategy that factors in tax consequences.

 

Tax-Efficient Strategies

Coordinating with your tax advisor, we can help you implement tax-efficient investment strategies now and in the future to help reduce the likelihood of taxes becoming a burden, including:

 

  • Tax-Loss Harvesting - helps you plan when losses should be taken on your holdings to best offset income and other gains to your advantage for the tax year.
  • Tax-Lot Accounting Techniques - helps you determine which shares to liquidate, ultimately helping you to reduce taxes by managing capital gains and losses.
  • Legislation and Tax Code Education - gives you access to investor communications from our financial planning professionals that can help you stay abreast of any changes that could affect your assets and estate.
  • Qualified Retirement Plans - specifically for business owners, strategies to help reduce taxable income, increase tax-deferred retirement savings, or take advantage of tax-free Roth 401(k) options, if appropriate.

 

Tax-Efficient Investments

We can also help recommend which tax-efficient investments are appropriate for your needs and goals. Some of the types of considerations we make when making recommendations to you include:

  • ETFs and Index Mutual Funds - have a passive-management style and low portfolio turnover and typically tend to be more tax-efficient than many actively managed portfolios, with lower management costs.
  • Tax-Managed Mutual Funds - have a specific goal of employing tax strategies within the fund to limit annual distributions and, thereby, lowering their annual tax cost to their investors.
  • Municipal Bonds (Munis) - offer income that is free from federal, and in some cases, state taxes.
  • Annuities - offer the opportunity for tax deferral outside of retirement accounts for those who wish to save more efficiently.

 

You can find additional resources in Janney’s online tax planning guide.

 

Neither Janney Montgomery Scott LLC nor its Financial Advisors give tax, legal, or accounting advice. Please consult with the appropriate professional for advice concerning your particular circumstances.