White Coat Investor Podcast

WCI #237: How to Reduce your Investment Taxes

Nov 18, 2021
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ANECDOTE

Treated An Unappreciative, Intoxicated Patient

  • Dr. Jim Dahle recounts treating an ungrateful, intoxicated patient after a violent incident to highlight job difficulties.
  • He uses the story to remind listeners their work is hard and appreciated even if not always thanked.
ADVICE

Max Out Retirement Accounts First

  • Use tax-protected retirement accounts to shield investment growth and transactions from current taxation.
  • Max out these accounts when possible to gain tax deferral or tax-free growth and asset protection.
ADVICE

Prefer Tax-Efficient, Low-Turnover Holdings

  • Favor buy-and-hold, low-turnover investments that produce little taxable income to improve tax efficiency.
  • Hold for long-term to qualify for lower long-term capital gains and qualified dividend rates where possible.
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