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Take advantage of taxefficient investment strategies from "summary" of One Up On Wall Street by Peter Lynch,John Rothchild
One way to maximize your investment returns is by making use of tax-efficient investment strategies. This means finding ways to minimize the amount of taxes you have to pay on your investment gains. One common tax-efficient strategy is to hold onto your investments for the long term. By doing this, you can take advantage of lower long-term capital gains tax rates, which are typically lower than short-term capital gains tax rates. This can help you keep more of your investment gains in your pocket, rather than handing them over to the taxman. Another tax-efficient strategy is to make use of tax-advantaged accounts, such as IRAs and 401(k)s. By investing through these accounts, you can defer taxes on your investment gains until you withdraw the money in retirement, allowing your investments to grow tax-free in the meantime. You can also consider investing in tax-efficient investment vehicles, such as index funds or exchange-traded funds (ETFs). These types of investments tend to have lower turnover rates, which can help reduce the amount of capital gains distributions you have to pay taxes on.
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