|
Tip for reducing your tax bill...
I have long had a 'blind eye' to the tax man. As I've gotten older and make a little more and saved a little more, I've started to pay attention to reducing my tax load.
The one thing that escaped me until recently, was the concept of putting 'tax efficient' assets (index funds, low turnover funds, munis, equities) in taxable accounts and tax-inefficient stuff (bonds, bond funds, etc) into deferred account allocations (401ka, IRAs etc).
This was contrary to my instincts when 'investing' since i preferred to have 'safe' (tax inefficient) stuff in my taxable (easily accessible) accounts and the riskier (tax efficient) stuff in my longer term 401k/IRA etc.
Just thought I'd share my stupidity and minor revelation. Better late than never.
-Bernie
|