Tax Aware Investing

Control what you can Control!

I came across this blurb in this morning’s emails about taxes and investing.

Taxes can’t and shouldn’t be the only driver for your investment decisions, but being tax aware when you make investment decisions is potentially quite  beneficial.

After cost, the decision to invest, and your asset allocation, this may be the next most important step.

Check out the Wall Street Journal article for more information.

Ignoring tax impact is a common mistake. Advisers generally promise to be tax-sensitive in managing clients’ money, but “one of the biggest mistakes advisers make is ignoring the tax ramifications,” says Oregon-based adviser Julia Carlson. In a story on Wealth Adviser at, she describes how she helped redesign a client couple’s portfolio to reduce their tax liability. One of her moves involved shifting $1.3 million in a taxable account from actively managed funds that generated a lot of dividend income and short-term capital gains to index funds with lower turnover (and lower expenses).