Fixed Income Holdings In A Tax Efficient Retirement Portfolio

The fixed-income portions of a tax-efficient retirement portfolio need to be allocated properly to provide near-retirees and those in retirement with the largest net profits and lowest tax costs possible. Such a portfolio can help the senior preserve and create wealth and accumulate more assets to attain retirement security.

When choosing fixed-income investments, it's recommended that you buy into well-managed and reasonably priced municipal bond funds. Exchange-traded fund analysts also forecast an emerging slew of ETFs based on municipal bonds, some of which have predetermined maturity dates (meaning all of an investment portfolio's bonds would mature on a specific date. However, indexing municipal bonds is much more complex compared to other segments of the market (no doubt due to many issuers and the fragmentation factor), thus prompting some fixed-income experts to recommend active funds before you enter into ETFs or municipal index funds at present. As for your portfolio's cash portion, you can switch to low-cost municipal market funds that give it advantages over rival funds in a low-return market.

You can also set up a portfolio that doesn't contain bonds protected from inflation, although buffering against the effects of inflation is important to the stability of a retiree's investments. Why? Right now, TIPS or Treasury Inflation-Protected Securities aren't all that great for your taxable portfolio. Currently, I-bonds provide more tax advantages, but you can only buy up to $10,000 worth of these bonds yearly, making them unattractive for bigger investors. Also, with inflation being managed fairly well at this time, any short-term profits from investments protected against inflation may be comparatively small.

As a risk-conscious retiree who invests today, you'll need to make the stability of your nest egg and the decent purchasing power it can provide the main goals of your tax efficient portfolio. Consult with your tax advisor and investment planner to know more about the fixed-income portion of your portfolio, and how to invest and manage these to get more net profits and pay less for taxes.

About the Author:
Carina Smith is an author who specializes in financial topics concerning seniors. Puritan Financial Group specializes in finding investment options for seniors. For more information on how Puritan Financial Group can help you, please visit our website at http://www.puritanlife.com

Article Originally Published On: http://www.articlesnatch.com

Tags: Puritan Financial Group

, fixed-income holdings

, tax-efficient retirement

Related....

Videos...

Recent UnCategorized Articles

Color In Chinese Culture "...� By: fashionchinese | May 31st 2012 - Color in Chinese culture refers to the various colors that are considered auspicious or inauspicious. The Chinese character for color is (yns). In ancient China, the charac ...

learn chinese online

Galvanized Steel Sheets & Pipes: Necessities Of Life By: R. Peterson | May 31st 2012 - Galvanized Steel obtained after the process of some chemical coatings over steel to protect it from rust and other unusual weather threats like corroding. Yes, it is the coating of Zi ...

steel products

galvanized sheets

galvanized pipes

A New Weatherproof Coal Bunker By: James P Martin | May 31st 2012 - Storage is often one of the most pressing issues on the minds of homeowners.

Ergonomic Computer Chairs To Prevent Spinal Injuries By: Kelly Fox | May 31st 2012 - Ergonomics is the study of how a person sits, stand, position itself, and move around at the same time as performs his daily assignments. It is significant to get information on how t ...

How To Determine What Is A Good Website To Learn The Basics Of Forex Trading By: Mary Robins | May 31st 2012 - Foreign exchange is a platform for currency trading. A good website will explain why currencies are traded and how profits are made from these trades. It will also explain the value o ...

forex trading strategies

forex trading strategy

forex trading software

forex trading systems

forex trading tips

Choosing The Right Ergonomic Office Chair By: Kelly Fox | May 31st 2012 - Amongst the most significant piece of furniture a home office can boast off is the ergonomic office chair. There is a wide range of office chairs to opt from, reliant on the function ...

How To Eliminate Pests By: James P Martin | May 31st 2012 - If you have a pest problem at your home, you may not know how to effectively eliminate pests. However, eradicating pests from your home and yard does not need to be difficult; you jus ...

Newest Fashion Statement In Home Furniture By: Kelly Fox | May 31st 2012 - You see as soon as it comes to furnishing home with items like coffee tables, lesser is better is the latest trend, as the latest approach in the world of home furnishing is being mod ...

Guidelines On Choosing The Right Office Chairs For Your Office By: Kelly Fox | May 31st 2012 - A significant thing to keep in mind earlier than buying a new set of office chair is that, it must be within your desired budget, next it should be from a reputed furniture retailer w ...

Buying A Right Ergonomic Office Chair By: Kelly Fox | May 31st 2012 - Furthermore in all probability if any single piece of office furniture that has experienced the most alteration in due course, it simply has to be the ever-present office chairs. With ...

Comments

Still can't find what you are looking for? Search for it!

Site Navigation: