Tax Efficiency

Diversifying one’s investments is a basic tenet of retirement investing. Most savvy savers know they should not put all their savings into one basket. Yet people in the early to mid-stages of saving for retirement may be caught off guard to learn about the need for tax efficiency—balancing pre-tax, tax free, and post-tax retirement savings—as part of that plan.

This guide discusses the concept of tax efficiency and how creating the right mix of deferred and non-deferred savings can protect you from large tax liabilities in retirement years. You will learn about the shortcomings of deferred tax retirement savings and about the ways in which you can create tax efficiency as part of a well-balanced retirement savings strategy.