Basics of Tax-Efficient Investing
AUGUST 3, 2022
This phrase was designed to encourage investors to buy tax-free municipal bonds that provide a higher after-tax return than higher-yielding taxable bonds. In a more general way, the advertisement was also promoting the concept of tax-efficient investing. This is the process of (legally) structuring an investment portfolio so the least amount of tax is paid. If you expect to be in a higher tax bracket, consider Roth (after-tax) investments.