ETF Strategies For Beating The Tax Man This April 15
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The latest episode of Let's Talk ETFs sees iShares' Danny Prince rejoin the podcast to try and help investors save money on their tax bill. One of his key messages is that while ETFs are famously tax efficient relative to their cousins in the mutual fund space, how you use exchange traded funds to tax manage is just as important as the underlying tax efficiency inherent in many of these investing vehicles.Topics covered3:00 - Why do investors overlook the tax efficiency aspect of ETFs?Understanding how investments are taxed: 7:00 - Capital Gains9:30 - Qualified vs. non-qualified dividends11:30 - Tax-deferred vs. non-tax-deferred accounts14:00 - What do we mean when we say ETFs are “tax efficient”? And why is this the case?18:15 - Why are mutual funds much more likely to pay out capital gains than ETFs?21:30 - 2018 was a record year for mutual fund capital gains payouts; ETFs remained significantly more tax efficient over the same period Beyond equities: Tax rules for other asset classes and fund structures:27:00 - What does it mean when a bond fund is listed as being “tax-free”? Muni bond ETFs28:30 - ETFs that hold physical commodities are generally taxed as collectibles (IAU) (GLD) (SLV) 30:30 - Taxing futures-based ETFs: The 60/40 rule32:00 - Limited partnership funds and the tax man: Schedule k-1 formsTax management strategies:34:30 - Tax loss harvesting36:00 - The Wash Sale rule (IVV) (SPY)38:00 - Knowing which assets belong in tax-deferred vs. non-tax-deferred accounts40:15 - In summation: Investors need to be more conscious of how taxes can affect their bottom lineLearn more about your ad choices. Visit megaphone.fm/adchoices