Tax-Saving Tips for 2023: Avoid Year-End Trouble and Maximize ETF Benefits

TL;DR Summary
Holding stock mutual funds in taxable accounts can lead to unwanted distributions and tax liabilities. The JP Morgan Tax Aware Equity Fund is an example of a fund that will distribute capital gains before the year ends, resulting in a tax burden for investors. To avoid such situations, investors should consider locating investments wisely, exiting weak funds, researching a fund's tax cost ratio, considering "tax aware" funds with low expenses, harvesting losses, and preferring ETFs in taxable accounts. These strategies can help minimize tax trouble and maximize investment returns.
Topics:business#capital-gains#investment-strategies#mutual-funds#personal-finance#tax-sheltered-accounts#taxation
Reading Insights
Total Reads
0
Unique Readers
1
Time Saved
6 min
vs 7 min read
Condensed
93%
1,296 → 89 words
Want the full story? Read the original article
Read on Forbes