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