Wealth Studio

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  • Taxable or Tax-free Bonds in Retirement?

    Taxable or Tax-free Bonds in Retirement?

    Many investors assume that municipal bonds are always the best choice for high earners because of their tax-free income.  But this common rule of thumb overlooks a key transition: retirement. High earners benefit from municipals during their peak earning years, but once they retire, their income—and tax bracket—often drops significantly. …

  • Capital Gains Tax – How Much is Too Much?

    Capital Gains Tax – How Much is Too Much?

    Capital gains occur when securities are sold at a higher value than their purchase price, reflecting growth in your portfolio. While this is a positive sign, it also comes with a tax bill. For this article, I attempted to solve for the minimum amount of capital gains a balanced portfolio…

  • Are You Prepared for the Estate Tax Change?

    Are You Prepared for the Estate Tax Change?

    The IRS charges a 40% tax at death on any part of your estate over “the exemption” of $13.61M (as of 2024).  Legislation effective 2026 will reduce the exemption roughly by half. Shifting assets out of your estate before death can help you avoid paying millions in taxes and significantly…

  • Basics of Portfolio Construction

    Basics of Portfolio Construction

    The 10-year annualized return on the US tech sector has been about 19.7%, vs. the total US market at 8.6%, US Small stocks at 7.7% and International at 4.9%.  It seems pretty clear that tech has dominated, so why do most modern portfolios still include these other visibly underperforming assets…

  • Unrealized Gains – Pay the Tax and Move on?

    Unrealized Gains – Pay the Tax and Move on?

    Whether you are a frequent trader or not, investors will inevitably come across this situation: Being “stuck” with an investment because swapping it for another would cost a lot of taxes. Most times this results in indecision, and a less-than-ideal portfolio. This article will walk through the analysis behind how…

  • Premium vs. Discounted Bonds – Which is Better?

    Premium vs. Discounted Bonds – Which is Better?

    US Government bonds represent one of the largest and most heavily traded markets on the planet, and you’ve decided you need to own some. So which do you buy? This article will take a deep yet brief dive into the vastly different experiences an investor could have owning what look…

  • How Portfolio Taxes Can Erode Wealth

    How Portfolio Taxes Can Erode Wealth

    Investors rarely factor in the impact taxes have on their portfolio return. This impact is commonly referred to as tax friction. Simply, tax friction is the way taxes eat away at your investment gains. When you make money from interest, dividends, or selling stocks, you have to pay taxes on…

  • Risk Capacity & Risk Tolerance – Asset Allocation

    Risk Capacity & Risk Tolerance – Asset Allocation

    Risk Tolerance – Your willingness to take risk in the investment markets. Based on how you feel.Risk Capacity – A measurement of how aggressive you can invest without jeopardizing financial stability. Based on math and statistics. Often times an investors portfolio mix is said to be determined by a questionnaire…