Don’t wait until November or December to start thinking of the best tax strategies for your investments warns Steve Nicastro for NASDAQ.com. He offers 3 Tax-Sensitive Investment Strategies to Implement Now and includes The Center’s Melissa Joy’s strategy on asset location.
Sometimes tax-deferred investments aren’t an option. If you need to generate living expense income, you might want to use income from a taxable brokerage account. In that case, Melissa says focusing on buying municipal bonds can be a good strategy. Municipal bonds are usually federally tax-exempt* and are also exempt from many local and state taxes.
You can get exposure to bonds without a big tax hit by putting municipal bonds in your taxable account,” Melissa explains to NASDAQ.com.
Other tax-sensitive strategies include increasing contributions to tax advantaged retirement accounts and selling a losing investment to offset the gains from your winners. To read more from NASDAQ.com, click here.
*May be subject to state, local, and alternative minimum tax.
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