If you have built up a substantial taxable portfolio, it would pay to seek professional, tax-efficient investment management from your local bank trust department or money management firm. These firms will work with your CPA and estate attorney to maximize your after-tax return. Unlike many no-load mutual funds, which distribute capital gains yearly, trust departments and money managers will manage individual stocks, creating taxable gains and income when it makes sense for you. They also have expertise in individual municipal bonds and buy them at low commissions. These managers get paid on a percentage of your assets after taxes, so they share in your interest to build the portfolio and to maximize your after-tax return.
Taxes are relevant and certain.
Last year's hot mutual fund could be this year's dog. People should spend more time looking at tax effects they can control and less time on betting on the next hot investment. Making a portfolio more tax efficient is an easy way to immediately increase after-tax returns. He currently works analyzing investments for the Kentucky State Auditor's Office. Tobe is currently the President of the Louisville Society of Financial Analysts.