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Successful Tax-Efficient Strategies

by AOG Wealth Management

The investment management advisors from AOG Wealth Management are here to help you safeguard your wealth and meet your financial objectives. We provide wealth management services in a boutique setting, and manage our clients’ wealth with accountability, integrity and accuracy. One of the things we can do for clients is provide tax-efficient strategies to reduce their tax burden. Learn more about tax efficiency here:

Successful Tax-Efficient Strategies

What Is Tax Efficiency?

Tax efficiency refers to minimizing an investment’s tax liability. A tax-efficient strategy aims to achieve the least possible taxation for certain investments. A financial decision or investment is said to be tax-efficient if the tax outcome is lower than an alternative financial structure that achieves the same goal.

There are many ways to be tax-efficient when investing in public markets. Let’s discuss a few of them:

Methods to Improve Tax Efficiency

AOG Wealth Management can help you determine if these tax-efficient methods or other wealth management solutions  are the best way to meet your financial objectives. Keep in mind that a tax-efficient mutual fund is taxed at a lower rate relative to other mutual funds; however, these funds generate lower relative levels of capital gains and/or dividends compared with the average mutual fund.

A tax-deferred account can be used by taxpayers to make income-producing investments. Examples of tax-deferred accounts include a 401(k) plan and an IRA. Any capital gains or dividends earned from investing in these accounts are automatically reinvested into the account, which continues to grow tax-deferred until the taxpayer makes withdrawals.

Irrevocable trusts are useful for individuals who want to optimize estate tax efficiency. When a person owns assets in an irrevocable trust, they surrender incidents of ownership because they cannot revoke the trust and take back the assets. By using an irrevocable trust, the asset owner, in effect, removes assets from their taxable estate.

Another way to gain tax efficiency is to hold stocks for more than a year. This will subject an investor to the more tax-efficient long-term capital gains rate.

Our asset management services are personalized because we understand that financial goals are unique to each individual. When you work with AOG Wealth Management, we complete rigorous on-site due diligence and create investment solutions that are based on your personal circumstances and objectives. Call us at (866) 993-0203 to learn more about our services. We serve clients in Great Falls, VA, and nearby areas.

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.

The article and opinions in this publication are for general information only and are not intended to provide specific advice or recommendations for any individual.  We suggest that you consult your accountant, tax, or legal advisor with regard to your individual situation.

Category: Wealth Management