When Less Is More: How to Increase Aftertax Returns by Doing Less

High turnover can have a big impact on your tax bill, reducing bottom-line returns, while a buy-and-hold strategy can significantly improve long-term aftertax results. A lot of attention is given to stock and market returns. However, most of the attention is focused on rates of return before taxes. The bottom line, though, for any investor…

 

How the Sequence of Investment Returns Affects Your Wealth

This article originally appeared in the May 2015 issue of the AAII Journal. It’s a fact that the order in which you experience positive and negative returns significantly impacts how your portfolio performs. The big uncertainty is what actual sequence of returns you will experience in the future. It is impossible to predict how the markets will perform…