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Tax diversification can help manage tax liabilities in different investment scenarios from "summary" of Tax-free Wealth by Tom Wheelwright
When it comes to managing tax liabilities in different investment scenarios, tax diversification is a critical strategy to consider. Tax diversification involves spreading your investments across different tax treatments to help minimize taxes and maximize after-tax returns. By diversifying your investments into various tax categories, you can take advantage of different tax rates and timing. For example, you may have some investments in tax-deferred accounts like traditional IRAs or 401(k)s, which allow you to defer taxes on your contributions and investment earnings until you withdraw the funds in retirement. On the other hand, you may also have investments in tax-free account...Similar Posts
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