Mutual fund distributions, IRA contributions, asset location — these and other elements of clients’ finances factor into popular tax planning strategies. But are you taking full advantage of the tools at your disposal? Financial Planning consulted with several advisors about the tax-minimizing tactics that they employed. Here’s what they had to say about five of the most common techniques:
1. Tax-conscious asset location A general rule for minimizing taxes on investments is to put taxable bonds in tax-deferred retirement accounts such as traditional IRAs and 401(k)s, and to put stocks and tax-exempt municipal bonds in taxable accounts. But that’s just the start of strategic thinking about tax-smart placement of assets.
Register or login for access to this item and much more
All Financial Planning content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access