Unlock the Power of Tax-Efficient Investing
Five Overlooked Strategies to Keep More of What You Earn
Why Tax Efficiency Matters
If you're an entrepreneur, tech professional, or simply trying to make smarter financial decisions, you may not be aware – taxes can quietly erode your wealth over time. After 25 plus years in financial services, I’ve learned one truth that remains constant:
Most people don’t truly understand how to structure their investments and savings for long-term, tax-efficient growth.
But here’s the good news: a few simple strategies can help you avoid costly mistakes and potentially save tens – if not hundreds – of thousands of dollars over your lifetime.
Let’s break it down.
1. Master Asset Location
Think of your investment accounts like different containers – some are leak-proof (non-taxable), some slowly drip (tax-deferred), and others spill if you're not careful (taxable).
Here’s a smarter way to allocate:
Taxable Accounts: Use for high-growth investments that don’t produce dividends or with tax-efficient bonds (for example, ETFs, growth stocks, and municipal bonds).
Tax-Deferred Accounts: Store investments that produce short-term capital gains (such as, actively managed equity funds) and fixed income assets (like, bonds, CDs, and qualified annuities) here to delay taxes on gains and interest income.
Non-Taxable Accounts: Ideal for all equity and income-generating assets (especially, actively managed funds, Roth IRA annuities, and accumulation life insurance).
Think of it like wine storage: Display your prized bottles (growth assets) proudly and keep the everyday ones (short term capital gain and income producing assets) tucked away safely until you are ready to use them.
2. Harvest Tax Losses Strategically
Tax-loss harvesting allows you to sell underperforming assets to offset capital gains. Done right, it keeps your portfolio balanced and trims your tax bill.
Offset gains from high-performing investments
Reinvest proceeds in similar (but not identical) assets to maintain your strategy
Carry forward unused losses to future years
3. Max Out Retirement Plan Contributions
Leaving money on the table? Not on our watch.
Contribute at least enough to earn your full employer match to the 401(k), IRA, or other qualified plan that is offered at work
Maximize contributions to Roth and Roth alternative options to lock in non-taxable income later in life
Set up automatic contributions – you’ll thank yourself later
4. Stay Current on Tax Laws
Tax laws evolve constantly – and fast.
Subscribe to IRS updates or a financial newsletter
Stay proactive to avoid penalties or missed opportunities
Major legislation (like, SECURE Act 2.0) can affect retirement timelines, RMDs, and contributions
5. Partner with Professionals
Would you rebuild your engine without a mechanic? Probably not. Likewise, don’t go it alone when it comes to wealth and tax planning.
Trusted financial and tax advisors can:
Personalize strategies to your goals and risk profile (financial advisor)
Monitor ongoing tax impacts and adjust as needed (tax advisor)
Help you confidently navigate market and legislative changes (financial + tax advisor)
Final Thought:
Tax-efficient investing isn’t about loopholes or luck – it’s about making smarter choices with your money.
“It’s not what you earn – it’s what you keep.”
Let’s make sure you keep more of it.
Schedule Your Complimentary 30-Minute Strategy Session
Let’s talk about how to apply these strategies to your specific financial situation.
Whether you're a high-income professional, entrepreneur, or just looking to protect more of your hard-earned wealth, we’ll walk you through personalized, tax-efficient planning options.
Book your no-cost session today at:
info@rothadvisors.com
(503) 701-6465
Disclosure: This content is for informational purposes only and should not be considered investment, insurance, or tax advice. All investing involves risk, including the potential loss of principal. Speak with qualified financial and tax professionals before making any decisions.