Subscribe to our free weekly newsletter by entering your email address below.
Money-Guy 03-10-2010
Today’s show was spurred by two things: 1) it’s tax time and, therefore, thinking about taxes and tax planning is fresh on most people’s minds, and 2) a letter we received from one of our Premium Subscribers. In the letter, he stated he would like to hear a show on the tax efficiency of mutual funds and how you select a fund that is tax efficient. So, we set out to answer his questions…
You can’t really discuss the tax efficiency of mutual funds without touching on on the tax efficiency of individual stocks and bonds as well as the tax efficiency of Exchange Traded Funds. In the show, we try to explain that all three have different levels of tax efficiency and that each may be more or less tax efficient than the others depending on the current market environment.
As you listen, keep an ear out for the following topics:
There are two important thoughts that Bo and I share that I want to make sure you don’t miss. First, when trying to design a portfolio that is tax efficient, it is much more important to focus your efforts on the vehicle in which you will hold the investment (i.e. 401K, IRA, Roth, etc.), than the efficiency of the actual investment. The second issue we try to stress is:
“Don’t let the tax tail wag the investment dog…”
This simply means, don’t sacrifice diversification and/or performance to save a little on taxes. Tax planning and tax efficiency should be a tool to optimize your portfolio, not your overall purpose for investing.
As we wrap up the show, Bo and I share some current events that have happened over the last week. Our purpose in sharing these is simply to get your opinion. We have no doubt that you, our Money-Guy listeners, are the “cream of the crop”, and we truly value your thoughts and ideas surrounding these topics!
Financial Order of Operations®: Maximize Your Army of Dollar Bills!
Here are the 9 steps you’ve been waiting for Building wealth is simple when you know what to do and…
View ResourceHow Much Should You Save?
How much of your income can you replace in retirement? You can replace different portions of your income in retirement…
View ResourceExclusive Sneak Peek of Millionaire Mission by Brian Preston
Read MoreHow To Save for Retirement When You Have a Pension
Read MoreHow Will the Next President Affect the Stock Market?
Read MoreHow about more sense and more money?
Check for blindspots and shift into the financial fast-lane. Join a community of like minded Financial Mutants as we accelerate our wealth building process and have fun while doing it.
It's like finding some change in the couch cushions.
Watch or listen every week to learn and apply financial strategies to grow your wealth and live your best life.
Subscribe to our free weekly newsletter by entering your email address below.