Tax Tip Tuesday – Diversification – July 23, 2019

Are  you  familiar  with  strategies  that  are  available  to  help  you  spread  your  investments   across  taxable,  tax-­‐deferred  and  tax-­‐free  accounts?

The  subject  of  “diversification”  is  often  discussed  when  topics  such  as  mutual  funds,   stocks,  bonds,  real  estate  and  other  investment  classes  are  on  the  table.  However,  what   about  tax  diversification?

The  primary  reason  for  developing  a  tax  diversification  strategy  is  it’s  impossible  to  know   precisely  what  your  tax  rate  will  be  throughout  your  retirement  years,  especially  if   retirement  is  still  many  years  away  for  you.

Putting  all  of  your  investments  in  only  one  type  of  account  is  unlikely  to  be  the  most  tax-­‐ efficient  strategy.    Tax  diversification  can  help  protect  your  investments  and  minimize   risk  from  significant  tax  rate  changes.

Give us a call so that we can set aside a time to discuss your investments and make sure they are set up the way you want!