This week, we’re talking about the immutable principles of successful investing.  Successful investing for the long-term requires discipline and sticking to a set of unchanging principles.  Today’s immutable, unchanging principle is tax awareness.

Investing for your retirement is fraught with of potential tax land mines. Our tax system is complex and there are a lot of rules and exceptions to those rules, especially when it comes to taxes on your investment portfolio.

At some point, I’m going to devote an entire week or more to this topic because it’s critically important, but for today, what I want to convey is how important an awareness of taxes is for your long-term returns.

First and foremost, it’s important to understand the tax treatment of different account types. IRAs, Trust accounts, and Roth IRAs all have vastly different tax treatments - both on money going in to the account, how money is taxed while it stays invested in the account, and how the money is taxed on the way out.

So by understanding how each of these accounts are taxed, you can then make better decisions about the types of investments you own in each to maximize the tax efficiency with the different types of accounts that you have.

Not sure if your portfolio is as tax efficient as it could be? I have a special treat for you. If you send me a copy of your account statement - either for a single account or your entire portfolio - I’ll do a tax awareness audit on your portfolio to let you know if there are any glaring tax-inefficiencies in your investment portfolio.

Send an email to [email protected], that [email protected], and I’ll send you a link to upload a copy of your statement to me securely.

That’s it for today! Thanks for listening. Tomorrow, I’m going to share with you my rule of thumb for determining if your investment fees are reasonable.

My name is Ashley Micciche and this is the One Minute Retirement Tip.

----------

>>> Subscribe on iTunes: https://apple.co/2DI2LSP

>>> Subscribe on Amazon Alexa: https://amzn.to/2xRKrCs

>>> Check out our blog: https://truenorthretirementadvisors.com/blog/

----------

Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance, wealth management,  investment principles, how to be a good investor, stock market, stock market investing, disciplined investing, timing investments, stock market downturn, recession, bear market, bull market, how to make money in the stock market, how to make money in stocks, tax aware investing, tax efficient investing, how are investments taxed, taxed on stocks, capital gains taxes, investment tax rate