Tax-Efficient Investing: 3 Smart Strategies to Lower Your Tax Bill

Tyler Hafford and Hannah Tackett break down three powerful tax-efficient investing strategies—Roth conversions, tax-loss harvesting, and asset location—in this year-end planning episode of Dollars to Dreams. With relatable explanations and smart examples, they show how being intentional with your investments and account types can reduce tax drag and boost long-term growth. Whether you're managing a dip in the market or planning for retirement, these strategies help you keep more of what you earn.

You’ll learn:  

1. Roth Conversions – When and why to consider converting traditional retirement dollars to Roth accounts for tax-free growth.

2. Tax-Loss Harvesting – How realizing losses can help offset gains or income and reduce your current year’s tax bill.

3. Asset Location – Optimizing where your investments live to limit tax exposure while maintaining the same overall portfolio.

Takeaways:

• [03:05] – “Taxes are one of the biggest drags on investment performance.” – Why tax-efficient investing matters for long-term gains.

• [07:12] – Roth conversions explained – Ideal during low-income years, especially before RMDs or during early retirement.

• [13:40] – Tax-loss harvesting strategy – Offset gains or reduce income by realizing losses during dips, rebalancing, or year-end planning.

• [18:28] – Asset location insight – Place tax-inefficient investments (like bonds) in IRAs and tax-efficient ones (like index funds) in brokerage accounts.

• [21:45] – “Review asset location regularly.” – Keeping your portfolio efficient isn’t just a one-time setup—it’s an ongoing process.

Got questions? We can answer them with clear, actionable strategies. Contact us at PenobscotFA.com.