8 Tips to Maximize Tax Savings


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Want to save on taxes? Matt and I discuss 8 different strategies that can help you keep more money in your pocket. We cover the first 3 tips in this first podcast, followed by 5 more in the next podcast.

  1. Use Index funds over actively managed funds. This is generally great advice, but also better at saving on taxes due to less turnover of holdings.
  2. Use ETFs instead of mutual funds. ETFs are a unique “wrapper” that avoids you from paying taxes on interest and dividends.
  3. Hold the right asset in the right account. Tax-deferred and Tax-free accounts (401k, IRA, etc) are great for bond funds because you avoid paying taxes on the interest and dividends each year.
  4. Tax-loss Harvesting. Make lemonade out of lemons by intentionally taking a loss and deducting it from your taxes or offset other gains and pay no tax.
  5. Tax-Lot Management. It’s important to sell the correct shares so that you take advantage of short-term or long-term gains/losses in your account.
  6. Savvy Rebalance. Use additional funds or tax-deferred/free accounts to do your rebalancing and avoid paying capital gains.
  7. Long-term Investing Horizons. Long-term capital gains are taxed at a lower rate than short-term. Invest for the long run!
  8. Charitable Giving. Donating appreciated assets helps you avoid paying taxes on capital gains.

Find out more about Mike at https://www.mortonfinancialadvice.com and connect at https://www.linkedin.com/in/mwsmorton/

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