Wealth Enhancement

Most people aren’t fully aware of what wealth management entails. At Truuwater Financial, we break it into five main categories: wealth preservation, wealth enhancement, wealth transfer, wealth protection, and charitable giving. We covered the first, wealth preservation, earlier this month. Let’s now shift our focus to wealth enhancement.

The objective of wealth enhancement is to minimize taxes and fees to help grow your wealth most efficiently.  However, not all investments are built the same. Some, such as equity index Exchange Traded Funds (ETFs), follow a simple investment strategy and have a relatively low expense ratio. Others with more complex strategies demand a higher fee. Be careful, though. Higher expenses can disguise 12b-1 marketing fees and other “filler” that eats away at your return.

Depending on your income bracket, Uncle Sam’s cut may significantly impact your bottom-line return. Some strategies spin off high investment income, making them most appropriate for your IRA or other tax-deferred or non-taxable accounts. On the other hand, some investments like individual stocks and municipal bonds are taxed more favorably in your taxable accounts. However, these aren’t hard and fast rules. To reach your ideal return, you may need to sacrifice some tax savings.

Contact our office today to ensure your portfolio is invested efficiently for your return needs.

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Stratos Wealth Partners and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

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