Five Things to Evaluate in a Tax-Managed Investment Strategy

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It’s about what you earn and what you keep.

It’s an old line among financial advisors that the best way not to pay taxes on your investment gains is to die. Obviously, that’s not the most helpful advice, so I have spent the better part of my career developing tax-managed strategies for the living.

It’s natural for investors to be intimidated by anything to do with taxes. Even Albert Einstein said that the hardest thing in the world to understand is income tax. It’s not like calculus, but it can be just as complicated. If you’re looking to access your investment dollars and they have gone up, you’re likely going to owe a tax on the appreciated amount. There’s generally no way to avoid taxes. But how you approach the challenge will have a major impact on an investor’s life and goals.

Here are five things investors and advisors should consider and weigh when it comes to tax-managed investing: