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Tax-efficient investing focuses on strategies that may help reduce the tax impact of gains, income, and withdrawals.
An advisor can work with your CPA or tax professional to evaluate strategies such as Roth conversions, tax-aware withdrawals, charitable giving, and tax-loss harvesting where appropriate.
Ideally, tax planning begins years before retirement so you have more time to evaluate options and prepare for future income needs.
Some accounts are taxed upon withdrawal, while others may offer different tax treatment depending on account type and applicable rules.
A Roth conversion is the process of moving assets from certain pre-tax retirement accounts into a Roth account, which may create current tax liability but could help reduce future tax burden depending on your situation.