How to Increase Risk Adjusted Portfolio Returns and Minimize Taxes as you plan for Retirement
In this series, we’ll be discussing how to improve after-tax wealth and minimize taxes simply by utilizing simple, but savvy financial planning tools.
If you’re a HNW individual looking to retire early or maximize the wealth they pass on to their kids, this presentation will show you how to utilize strategies that will allow you to do so.
While I recommend watching the video in entirety, for those that just want to skip ahead to the parts that are most relevant to them, I’ve included Time Stamps below:
- 0:00 – Intro
- 8:47 – How are stocks used in a portfolio?
- 11:31 – How have bonds and stocks performed in a subdued equity market (2002-2011)?
- 16:45 – How have bonds and stocks performed over the entire 20 year period (2002-2021)?
- 18:15 – Why are stocks higher earning and more tax-efficient than bonds?
- 22:15 – Why is tax-deferral so valuable?
- 25:45 – What is the problem with Target Date Funds, Retirement Models, and overallocation to bonds?
- 29:01 – Why does rebalancing portfolio away from higher earning, tax-efficient stocks to lower earning, tax-inefficient bonds hurt clients?
- 34:52 – Is paying a financial advisor 1% of assets worth it if they’re only increasing the portfolio allocation to a more bond heavy portfolio?
- 46:35 – What is protected investing and how can it provide higher after-tax returns and less
- 56:05 – What is step-up in basis and why is it so valuable in passing on wealth tax-free?
- 01:05:26 – Why is it better to borrow against my portfolio than to utilize taxable withdrawals?
- 01:12:10 – How can I pay 0% in capital gains taxes in retirement?
Key topics covered:
- Step-up in basis which allows you the ability to pass up to $24M tax-free to your beneficiaries.
- Why it’s better to borrow against your portfolio at low interest rates and pass on wealth tax-free than to take taxable withdrawals.
- How to pay 0% in taxes on capital gains and how to use this strategy if you want to retire early.
- Why current retirement models and financial advisors over allocate to bonds as clients near retirement and why this benefits advisors but hurts clients