Investment Taxes Can Cost You 50% Of Your Returns

The Josh Scandlen Podcast

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5y ago 28:48

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Tax-efficient investing is what Vanguard is known for. They just sent out a summary of their "model portfolios" and highlights the gross and after tax returns of each. Which I love. And you should too. You can find it here. https://advisors.vanguard.com/web/cf/vanguard-models/?INCMPGN=IN:BR:XX:FAS:XX:20180514:ALL:XX:LINK:MODPORT:TAX:EFFICENCY

Their 100% equity portfolio lost 6% of its returns to taxes over the last 5 years. Gross returns were 10.63%. After tax returns were 10.01%. (After tax returns use the highest possible federal rate at the time of distribution but does NOT include state tax.)

Their 100% fixed income portfolio though gave away 50% of its returns to taxes. Before tax it averaged around 2%, after tax, 1%.

That, my friends, is a big deal!

In this episode you're going to learn how to avoid all that.

3 accounts. $100k in each, a Traditional IRA, a Roth IRA and a Taxable account. You are a 50/50 investor, that is 50% stocks and 50% bonds.

Where you hold your stocks and bonds in which account can make a HUGE difference in your ability to create wealth.

I'll show you exactly what to do in this video.

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