No one enjoys handing money over to the IRS, but everyone is responsible for paying taxes. Taking advantage of tax-efficient investing options can help you reap the benefits of certain tax breaks, especially if you fall into a higher tax bracket.
What is the most tax-efficient way to invest money?
The most tax-efficient way to invest money depends on your personal financial situation but generally includes using tax-advantaged accounts to house investments that may generate a lot of taxable income or taxable gains, and using non-tax-advantaged accounts to house investments that don’t generate much taxable income or taxable gains.
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Tax-advantaged accounts such as 401(k)s, IRAs, 529s, health savings accounts and irrevocable trusts can be a…
