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EP 18: Mutual Fund Tax Surprise: Capital Gain Distributions!

Mar 1, 2023

Mutual funds have long provided a simple way for Americans to diversify their assets and invest for the future. The primary attraction of mutual funds has been the ease of diversification and affordable access to professional managers which has helped the US mutual fund industry grow to control over $20 trillion in assets. However, what many people don’t understand is how owning mutual funds in taxable brokerage accounts often results in capital gain distributions that increase their tax burden and reduce the long-term growth of their portfolio. In this episode, we discuss the challenges that investors face when investing in mutual funds and what options they have to build portfolios that increase the likelihood of achieving the best long-term results. If you are interested in maximizing the tax efficiency of your investment portfolio, we think you’ll enjoy this episode. Thanks for listening! For those who are interested in even more detail about tax efficient investing and minimizing capital gain distributions, check out our blog post covering the same topic at https://pw-wm.com/learn/tax-planning/mutual-fund-tax-surprise-capital-gain-distributions/.

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For those who are interested in even more detail about tax efficient investing and minimizing capital gain distributions, check out our blog post covering the same topic.

About The Podcast Hosts

Steve & Nathan

Steve and Nathan have a passion for teaching others about finances and how to build the financial independence that is achievable with the proper planning. In their roles at Prairiewood Wealth Management, both Nathan and Steve focus on providing comprehensive financial advice to ensure their clients have a coordinated plan that covers all aspects of their finances including their investments, insurance, estate plan, and charitable giving goals.

As Certified Public Accountants (CPAs), both Nathan and Steve believe that one of the most overlooked aspects of financial advice is the tax impacts that result. Accordingly, a core focus of the advice they give centers on integrating tax strategy into the overall financial advising process.

Steve and Nathan are excited to share their knowledge through this podcast as well as their blog with the goal of helping you effectively manage your family’s wealth and ensure you have a comprehensive and coordinated plan for your future.

About Steve & Nathan