Basic Tax Diversification

When investors talk about diversification, they’re typically referring to diversification. But there’s another kind of diversification. It’s called tax diversification and you might be practicing it without knowing it. Tax diversification is the idea that you should have investments subject to each of the various tax treatments. The idea applies not only to U.S. citizens, but those of other countries as well. There are three types of tax treatments for our purposes – tax-deferred, tax-free, and taxable. The three account types Tax-deferred. Tax-deferred accounts are Continue reading →