Navigating Taxes for Optimal Wealth Growth

Tax-Efficient Investing Strategies for Midsouth Investors

For investors across the Midsouth, tax-efficient investing strategies may help you pursue higher after-tax returns and support your long-term financial goals. By structuring your portfolio with an eye toward minimizing tax liabilities, you may be able to improve the efficiency of your investment returns over time.

Key Strategies

Utilize Tax-Advantaged Accounts
Consider maximizing contributions to accounts such as 401(k)s, IRAs, or Roth IRAs. These accounts may offer tax deferral or tax-free growth, which can be valuable as cost-of-living pressures increase in the region.

Strategic Asset Location
Placing tax-inefficient investments (such as bonds or actively managed funds) in tax-advantaged accounts, and holding tax-efficient assets (like index funds and ETFs) in taxable accounts, may help reduce your annual tax exposure. This approach can improve the overall tax efficiency of your investment strategy.

Tax-Loss Harvesting
Tax-loss harvesting involves selling investments at a loss to offset gains elsewhere in your portfolio, which can potentially lower your tax bill. Regularly reviewing your portfolio for harvesting opportunities—and being aware of IRS wash-sale rules—can help you make the most of this strategy. It is recommended to consult a qualified tax professional before implementing tax-loss harvesting.

Municipal Bonds
Midsouth investors may find municipal bonds beneficial, as they often provide interest income that is exempt from federal taxes and, in some cases, state taxes as well. Depending on your individual tax situation, this may increase your after-tax returns.

Local Perspective

With real estate values and investment activity rising in the Midsouth, planning for capital gains and utilizing tax-advantaged accounts may help you retain more of your investment returns.

Sources:

• https://riverwaterpartners.com/2025/03/26/tax-efficient-strategies-2025/
• https://www.jmco.com/articles/tax/tax-efficient-investing-strategies/
• https://www.midsouthadvisors.net/resource-center/tax

Disclaimer:
Duncan Williams Asset Management (DWAM) is a Registered Investment Advisor. The information provided is for educational purposes only and does not constitute investment, legal, or tax advice. All investments involve risk, including the potential loss of principal. Past performance does not guarantee future results. Please consult with a qualified professional before making any financial decisions.

This material is not intended to serve as personalized tax, legal and/or investment advice since the availability and effectiveness of any strategy is dependent upon your individual facts and circumstances. Duncan Williams Asset Management is not a legal or accounting firm. Please consult with your legal or tax professional regarding your specific tax situation when determining if any of the mentioned strategies are right for you.

‍

‍