The information I am providing is my opinion and not necessarily that of my firm or this platform.  I am only providing general educational information and not any customized investment recommendations. You should consult with your Financial Advisor, Tax Advisor or Attorney on your specific situation. Nothing shall be construed as Financial, Tax or legal advice or recommendations.

Tax efficient investing is a strategic approach designed to minimize the tax burden on investments, thereby enhancing overall returns. This method involves placing various types of investments in specific accounts based on their tax implications, such as holding high-income assets like bonds and mutual funds in tax-deferred accounts and placing tax-efficient vehicles like index funds and ETFs in taxable accounts. Kris Flammang advocates for using strategies like asset location and tax loss harvesting to reduce tax liabilities, highlighting the role of Roth IRAs for younger investors, and recommends consulting professionals for personalized strategies. Meanwhile, Collin Habig underscores the importance of tax-efficient investing through the strategic placement of assets and emphasizes the potential of tax-loss harvesting to offset gains, advocating for a tailored approach with the guidance of financial experts to optimize tax efficiency. Both perspectives converge on the importance of strategic planning and professional advice in achieving long-term financial success.

Here’s what to expect this episode:

• High-income generating assets like bonds and mutual funds are best kept in tax-deferred accounts like 401ks and IRAs.

• Tax-efficient investments like index funds and ETFs are more suited for taxable accounts.

• Tax loss harvesting is a tactic used to offset capital gains by selling investments that have lost value, reducing overall taxable income.

Connect with Collin Habig

https://www.linkedin.com/in/collinhabig/

Connect with Kris Flammang

https://www.lpfadvisors.com/

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