Are Low Turnover Investment Strategies Overrated?

May 19, 2014 / By Michael Kitces, MSFS, MTAX, CFP, CLU, ChFC
Print AAA
Add to My Archive
My Folder

My Notes
Low turnover is supposed to extend the life of an investment, deferring any tax on growth until another day. But even one transaction every 10 years can forfeit 50% of the wealth benefit of tax deferral. Add in dividends and even more of the tax benefits evaporate. There is remarkably little value to reducing portfolio turnover, unless you can reduce it to zero.

Read the Full Article Now
Take a 60-Day Free Trial

No credit card, no obligation
Financial Professionals only

Already a Horsesmouth member?

Member Login

This material is provided exclusively for use by Horsesmouth members and is subject to Horsesmouth Terms & Conditions and applicable copyright laws. Unauthorized use, reproduction or distribution of this material is a violation of federal law and punishable by civil and criminal penalty. This material is furnished “as is” without warranty of any kind. Its accuracy and completeness is not guaranteed and all warranties express or implied are hereby excluded.

© 2022 Horsesmouth, LLC. All Rights Reserved.