Sentences with phrase «tax inefficiency»

Both Justin and I have written about the serious tax inefficiencies of traditional bond ETFs, and this point is driven home with a glance at their tax cost ratios.

Although we rebalance on a cyclical basis to account for relative asset class risk, we can do this without creating excessive tax inefficiencies, charging high fees or creating other portfolio frictions that degrade performance.

The generally greater turnover of actively managed funds is likely to result in greater tax inefficiency, and, therefore, lower after - tax returnsâ $» the only kind we get to spend.

Tax inefficiencies also have to be taken into consideration.

Such endeavor would simplify cross-border transactions, ease transfer of ownership, alleviate tax inefficiencies, and eliminate substantial overheads, among other benefits.

In this case, tax inefficiency trumps diversification.

There is a natural belief that a professional investor working harder and smarter than the rest can earn a greater return that justifies the high fees and tax inefficiency.

Mutual funds are well known for their tax inefficiency.

A further note on the tax inefficiency of mutual funds in taxable accounts.

tax inefficiency — the interest earned on the emergency fund is taxed at your marginal tax rate.

Mutual funds are well known for their tax inefficiency.

A further note on the tax inefficiency of mutual funds in taxable accounts.

In reality, it is the long - term shareholders that will suffer the most by the tax inefficiency of the capital gain generating transactions.»

Some managed accounts offer a good service for the price; others have high fees and tax inefficiencies.

Therefore, the holdings in one's portfolio should be reviewed to see if there are any tax inefficiencies.

The second link is that the high costs of active strategies, in terms of expense ratios, trading costs and tax inefficiency, result in shrinkage of returns available to investors.

We, for example, work with our clients» accountants to provide an annual tax package and to review any areas where there are tax inefficiencies.

In the what - if scenario, the client saves 0.74 % less any tax inefficiency for HST.

That people think they can engage in frenetic trading and outperform the markets is less surprising but no less a problem as is tax inefficiency.

So with that mind - set in place, the second row (the traditional optimum allocation) comes out ahead of a default balanced everywhere option not because of the tax inefficiency of bonds and the sheltering of the RRSP, but because the effective 76:24 portfolio has a higher expected return in the first place.

These are overhead costs, tax inefficiencies and potential value destruction.