Peace of Mind

Investment Strategies

 

KEY POINTS:
 
  • Contribute as much as possible to all tax-efficient accounts, such as IRAs and 401(k)s, to help provide the opportunity to build wealth while minimizing taxes.
  • Diversify your investment account types to potentially help reduce taxes in retirement.
  • Consider managing the tax impact of investment gains by minimizing turnover, harvesting losses and choosing tax-efficient investments.

* Take advantage of tax-efficient retirement accounts for which you are eligible to reduce current and or future taxes.

Current income tax impact:
 
  • Traditional IRA contributions are tax deductible:
    •       If you do not exceed certain limits or
          If you are not eligible to participate in an employer sponsored retirement plan, such as a 401(k).
  • Traditional 401(k) contributions are made with pre-tax contributions reducing your current taxable income

 

Future income tax impact:
 
  • Traditional IRAs and 401(k)s offer tax-deferred growth potential
  • 401(k)s and Roth IRAs offer tax-free growth potential

(Click here for limits on what you can contribute and income limits.)

 

To find more information on investment strategies to assist with your portfolio, visit:
http://www.merrilledge.com/article/tax-smart-investment-strategies-you-should-consider

https://www.fidelity.com/viewpoints/investing-ideas/tax-strategy