Are Your Assets Diversified with Your Taxes in Mind?

If the answer to this question is, “I don’t know,” then you may want to explore some financial vehicles that are designed to fill the void between stock market investments and lower-yielding interest accounts.
The stock market can be risky, that’s no secret, which is why the best way to invest in the stock market is by being an informed investor. An informed investor knows that market diversification is a well-known way to deal with the often volatile marketplace. Diversification can be a great way to potentially increase your stock market returns, while allocating your risk among a greater number of investments. You might ask, “How do I make sure that my stocks are diversified?”
Diversification means spreading your dollars among various different asset classes, which are things like Protected Principal, Income, Growth and Income, Aggressive Growth, Government Bonds, Corporate Bonds, Stocks, Foreign Currency and more. Each asset class is expected to reflect different risk characteristics and different return characteristics, and perform differently in any given market environment.
Have you ever considered the significant of taxes when it comes to the different asset classes? Are your investments diversified to maximize your assets based upon your individual tax situation? We know we can’t control the stock market, income tax brackets or estate tax rates. So, what can we control? The amount of money that the income tax and estate tax rates are applied to and/or levied against.
Most financial professionals focus on which asset class to invest your money into. This type of diversification is important, but being diversified with taxes in mind is just as important. The more wealth that an individual creates, the more he/she should consider diversifying his/her assets.
Freedom Financial Strategies can help you explore the benefits of diversifying your assets with your taxes in mind. Contact John Oxley at (856) 669-8866 or john@freedomfinancialstrategy.com, or visit the office located at 601 Townbank Rd., North Cape May. For more information on Freedom Financial Strategies, visit www.freedomfinancialstrategy.com.
*John Oxley is an investment adviser representative of, and advisory services are offered through, USA Financial Securities Corp., a registered investment adviser. USA Financial Securities Corp., is located at 6020 E Fulton St., Ada MI 49301. Freedom Financial Strategies is not affiliated with USA Financial Securities.