Tax-Efficient Investing

We optimize asset location by placing high-yield assets (e.g., corporate bonds with ordinary income) in tax-deferred accounts like IRAs, while holding tax-efficient ones (e.g., municipal bonds with tax-exempt interest) in taxable accounts. This leverages 2026 brackets, where long-term capital gains remain at 0-20% based on income thresholds. Tax-loss harvesting systematically sells losers to offset gains, with carryforwards if losses exceed $3,000 net annually.
Advanced techniques include opportunity-zone investments for capital gains deferral (up to 15% exclusion if held 7 years) and qualified charitable distributions (QCDs) from IRAs to avoid RMD taxation. We model Roth conversion ladders, converting amounts annually to fill lower brackets, reducing future RMDs and NIIT (3.8% surtax on investment income over $250,000 AGI). Projections show potential 1-2% annualized after-tax boost.
Integration with ESG ensures tax-efficient sustainable funds, with annual reviews to adapt to TCJA sunsets or new policies, minimizing drag from inflation-adjusted brackets and preserving more for legacy goals.