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8 01, 2021

Tax-Aware Investing: Keep More of Your Gains Without Greater Risk

By |2021-01-21T22:41:05-07:00January 8th, 2021|Categories: Tax Diversification, Tax Planning|Tags: , , , |0 Comments

Investors are often concerned about minimizing transaction costs that can eat into their gains, without realizing that taxes can take an even bigger bite out of returns. Tax-aware investment management offers some protection. This is an active investment approach that aims to maximize after-tax returns. It relies on careful construction of a portfolio and proactive

20 11, 2020

Why an ETF is Better Than a Mutual Fund

By |2020-11-29T00:00:48-07:00November 20th, 2020|Categories: Financial Guides, Retirement Planning, Tax Diversification|Tags: , , , |0 Comments

Investors looking for an easy way to buy a diversified portfolio used to opt for mutual funds. Today, exchange-traded funds (ETFs) are an increasingly popular option offering several benefits. Both vehicles invest shareholders’ combined money in a broad set of assets, which provides the safety of diversification without the stress of buying and selling individual

16 10, 2020

Real Estate Investments Yield Low-Tax Income

By |2020-10-19T08:16:52-07:00October 16th, 2020|Categories: Tax Diversification, Tax Planning|Tags: , , , , , |0 Comments

It’s a sad fact of the tax code that the more money you make, the more you owe to the tax man. That’s especially true if you’re self-employed and paying the entire 15.3% Federal Insurance Contributions Act (FICA) tax for Social Security and Medicare yourself. Investing in real estate, however, can bring in extra income

2 09, 2020

What to Know About Health Savings Accounts (HSAs) in 2020

By |2020-09-07T01:00:05-07:00September 2nd, 2020|Categories: Retirement Planning, Tax Diversification, Tax Planning|Tags: , , , , , |0 Comments

Since health savings accounts (HSAs) were introduced in 2004 as part of the Medicare Prescription Drug, Improvement and Modernization Act, they have surged in popularity as a flexible way for numerous Americans to reduce taxable income and save for future medical expenses. But since the IRS establishes new rules governing HSAs each year, it’s important

26 08, 2020

Limiting Your Post-Retirement Tax Bite

By |2020-09-03T00:46:12-07:00August 26th, 2020|Categories: Retirement Planning, Tax Diversification, Tax Planning|Tags: , , , , , |0 Comments

Saving for retirement in tax-deferred vehicles is a great way to reduce your tax burden today. But it’s also important to limit the tax bite out of your hard-earned savings later by creating a stream of tax-free retirement income. By most estimates, income tax rates will likely rise in the future. Current rates set in

19 08, 2020

Saving for College? Consider Using a Life Insurance Retirement Plan (LIRP) as an Alternative to a 529 Plan

By |2020-08-20T02:43:28-07:00August 19th, 2020|Categories: Tax Diversification, Tax Planning|Tags: , , , |0 Comments

As the costs of higher education continue to rise, many parents worry about how they will pay for their kids’ educations without requiring them to borrow staggering amounts in student loans. In order to save for future tuition expenses, some families use a tax-advantaged tool called a 529 plan. While 529 plans offer a variety

25 06, 2020

Converting a Traditional IRA to a Roth May Pay Off—Even Near Retirement

By |2020-06-25T23:46:04-07:00June 25th, 2020|Categories: IRAs, Retirement Planning, Tax Diversification|Tags: , , , , |0 Comments

Saving for retirement in a traditional Individual Retirement Account effectively shelters income from taxes while you’re in your high-earning years. But a Roth IRA, which allows withdrawals tax free in retirement when tax rates may be higher, is also appealing. If you haven’t balanced your investments in both types of accounts—or if you couldn’t start

1 06, 2020

Balance Your Taxable and Tax-Advantaged Investments

By |2020-06-13T20:27:56-07:00June 1st, 2020|Categories: Retirement Planning, Tax Diversification|Tags: , , , , |0 Comments

Most investors are familiar with the idea of allocating investments across different asset classes to diversify portfolios and manage risk. It’s also important to balance savings across a mix of taxable, tax-deferred and tax-exempt accounts. Why? Simply put, investing for tax efficiency lets you keep more of your money. The first rule of investing is

18 05, 2020

Changes to Stretch IRAs Under the New SECURE Act

By |2020-06-13T21:18:58-07:00May 18th, 2020|Categories: IRAs, Retirement Planning, Tax Diversification, Tax News|Tags: , , , , , |0 Comments

When the Setting Every Community Up for Retirement Enhancement (SECURE) Act was enacted on January 1, 2020, it implemented some of the most significant changes to retirement plans that have been made in over a decade. One of these changes came as a disappointment to many IRA owners: the requirement that non-spousal beneficiaries of “stretch

11 05, 2020

New Rules Add Flexibility for Retirement Distributions

By |2020-06-13T21:29:57-07:00May 11th, 2020|Categories: IRAs, Retirement Planning, Tax Diversification, Tax News|Tags: , , , , , , |2 Comments

If you are 70 or about to hit that milestone, you’ve just gained more options in managing your retirement income. As of January 1, 2020, you can now delay taking required minimum distributions (RMDs) from retirement savings until age 72. Previous rules required distributions after age 70.5 from IRAs or employer-sponsored retirement plans such

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