Quotes About Tax efficiency

First, a total-market index fund is an ideal "core" equity holding in a taxable account, because of its "tax efficiency." The Russell 3000 and the Wilshire 5000 have essentially no turnover. Stocks may leave the index via mergers and acquisitions, but these are often not taxable events. The only way a stock truly leaves these portfolios is feet first, by going bankrupt, in which case you don't have to worry about capital gains.

We can fight over what the taxation levels should be, but the tax system should be very, very simple and not distortionary.

Because it was the income he had to work the least for, it is often the least taxed

People like me, whose income largely comes from dividends, should pay more taxes. The problem is that taxes aren't used efficiently.

learned from those I interviewed that tax efficiency is one of the most direct pathways to shorten the time it takes to get from where you are now to where you want to be financially.

Are there any exceptions to the rule? Only two that experts tell me are worth considering in so far as one needs the tax efficiency. Vanguard and TIAA-CREF both offer extremely low-cost variable annuities with a list of low-cost index funds to choose from. They do not charge commissions, so there are no surrender charges if you want to cash in.

If you conscientiously manage your investments for tax efficiency, your 7.5% allows you to double your investments in 9.6 years instead of 24 years! Now do you see the importance of both tax and fee efficiency?

The overwhelmingly large number of investors should seek membership in the passive management club. This group, instead of scratching for a small edge in today's extraordinarily efficient markets, wisely accepts what the markets deliver. Charley makes a compelling case for the market-matching strategy of investing in index funds, touting their simplicity, transparency, low cost, tax efficiency, and superior returns. Winning

Invest most or all of your money in index funds. Keep your costs of investing and taxes low.