This is the #1 thing I wish people knew about investing

If you change your portfolio, you might create taxes.

And for those that have invested mostly in stocks, you probably are sitting on large unrealized gains.

Say someone changes their investments, whether that’s from one stock to another, or one type of asset to another.

When you create taxes that decrease the starting value of your portfolio, whatever the new strategy/philosophy is, it HAS to produce a higher annual return just to get to the same place you might have been sticking with the previous strategy (but avoiding a large one-off tax bill from a rebalance).

I spend a lot of time working on how to transition people’s portfolios in a tax efficient manner.

There are multiple strategies that make this possible, but sometimes it can take multiple calendar years to do it tax-neutrally.

Investment returns are uncertain, but tax bills have more certainty to them so I am very intentional about trying to reduce them.

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Quantitative Financial Strategies, LLC is an investment adviser registered with the U.S. Securities and Exchange Commission. This material is for educational purposes only and is not tax, legal or investment advice. Investing involves risk, including possible loss of principal.