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How to Minimize the Tax Impact Outside Retirement Accounts?

by AOG Wealth Management
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Selecting suitable investments is not just about risk.  Taxes are also a factor when putting together an appropriate investment portfolio.  It’s important to understand your tax implications across each type of investment.  Your investment management expert, AOG Wealth Management, shares ways to minimize the tax impact when investing.

Tax Impact

Manage Capital Gains

Capital gains are any gains taxed when stocks are sold at a profit. Investments that have been held for less than a year are taxed as ordinary income. Meanwhile, gains from investments that have been held longer than a year can be taxed at a more advantageous rate. It’s important to prolong gains on taxable portfolios so they obtain long-term capital gains. You can spread the tax impact by selling part of an investment during the current tax year and then sell the remainder the following tax year.

Harvest Capital Losses

It is possible to offset the gains from other investments by selling the investments that have lost money. Harvesting your capital losses, along with proper asset management, can put you in a better financial situation.

These are just a few strategies to consider to help minimize the tax impact on your investments. While tax impact awareness is a factor to consider when investing, if you have an investment that is no longer appropriate, it is best to replace it.

Our experts at AOG Wealth Management can help you define and reach your financial goals with our investment and asset management services. You can call us at (866) 993-0203 for a complimentary consultation.

 

Securities offered through TD Ameritrade Institutional Services located at 7801 Mesquite Bend Drive, Suite 112, Irving, TX 75063-6043. Investment advisory services offered through AOG Wealth Management, Inc. AOG Wealth Management, Inc. is neither an affiliate nor subsidiary of TD Ameritrade Institutional Services.

AOG Wealth Management, Inc. does not provide tax or legal advice.  The opinions and views expressed here are for informational purposes only.  Please consult with your tax and/or legal advisor for such guidance.  The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions.  If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.

Category: Wealth Management