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Don't Flunk Out

My all-time favorite college class (circa 1981) was an introduction to the LOTUS spreadsheet, taught by Dr. Carl Shafer at Texas A&M.

My least favorite class was Introduction to Taxes. 

I knew early on the tax class wasn’t for me, so I dropped out before I flunked out. 

I get the sense that many investors look at taxes and tax law the same – we’d rather avoid the topic than learn about the intricacies of taxes and apply what we have learned to our financial plan. 

That is unfortunate, because for almost every investor, taxes are likely to be the biggest drain on their financial well-being, far surpassing the drain of fees and expenses in portfolios, and second only to their own behavioral mistakes. 

Minimizing taxes can significantly impact your overall return and wealth accumulation, yet the complexity of taxes can be overwhelming. The result? Investors focus most of their attention on what they know best – following the stock market and its daily impact on their portfolio. While portfolio management is essential, it should be integrated with a comprehensive tax strategy to accentuate your overall financial success.  

Today, I still prefer to spend more time exploring functions on spreadsheets and less time on tax returns. Fortunately, I am surrounded by tax professionals and CPAs who integrate tax law with portfolio management, allowing me to maximize my financial resources.

In the weeks ahead, we will review the impact taxes have on all aspects of your financial well-being. 

Looking for Guidance?

In my strategy call, we'll discuss your investment and financial plans, rebalancing approach, and your plan to accumulate wealth while working and withdrawal strategy during retirement. If you have $1 million or more of investible assets and are in or close to retirement, let's connect and build a plan together.