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Tax-Efficient Investing

By Sidney Kess
The CPA Journal
May 2019

The tax impact on investment income can be mitigated through the transfer of assets into retirement accounts. Not all accounts and investments are taxed equally, however, and the most efficient strategy is not always immediately apparent. Sidney Kess compares the three broad types of retirement accounts—pre-tax, after-tax, and taxable—and explains which assets are best placed in which type of account, and when.


Investment results blend two broad categories: the known and the unknown. The unknown is the performance of selected assets: How much money will be gained or lost from a particular stock, bond, fund, or investment property? The known, to a much greater extent, is the tax treatment of certain investments. This article demonstrates how, by taking advantage of reliable tax benefits, investors can significantly increase their chances of positive after-tax outcomes in both the short and long term.


Published with permission from The CPA Journal.

Click here for the full article.