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Consider the impact of taxes on your investment returns from "summary" of The Four Pillars of Investing: Lessons for Building a Winning Portfolio by William J. Bernstein
Taxes can significantly affect the returns on your investments. By being aware of the impact of taxes, you can make more informed decisions about your investment strategy. One important concept to consider is the tax efficiency of different types of investments. For example, investments like stocks and index funds tend to be more tax-efficient compared to actively managed mutual funds. This is because actively managed funds often have higher turnover rates, which can lead to more capital gains distributions that are taxable. On the other hand, stocks and index funds typically generate fewer capital gains, resulting in lower tax liabilities for investors. Another factor to consider is the timing of your investments. By strategically timing when you buy and sell investments, you can potentially reduce your tax burden. For inst...
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