The bad news is like it or not (and it’s hard to imagine anybody liking it) taxes are a significant and important consideration for any financial or investment plan. The worse news is that this is a complex topic that defies back-of-the-envelope estimation (even law school graduates who took all available tax-law classes often go further and earn post-gradualte degrees, the LLM, if they want to be taken seriously as tax experts). The good news . . . there really isn’t any. It’s there and we have no choice but to deal with it.
Clearly, the best way to address taxation, if you aren’t a specialist in your own right, is to consult a professional tax advisor or engage in serious personal study. So don’t expect the material presented here to make you an expert. Use it instated to give you some context around the relevant issues, to help you frame questions for further study of efforts to seek consultation.
Tax-Efficient Equity Investing: A primer on the difference between reported investment returns and after-tax returns with emphasis on how to think about tax optimization and how much you should mentally reduce the former in order to make plausible assumptions about the latter.
Taxation of the Income Component of Your Investment Returns