This article was originally published by Darrow advisor Kristin McKenna, CFP® by Forbes.
All else equal, we all want to pay as little tax as legally possible. For do-it-yourself investors, one of the biggest challenges is choosing which funds to invest in. Unfortunately, fund selection is often done without considering the type of account the security will be purchased for. Though ‘tax-sensitive’ mutual funds might sound like a great option, they’re actually quite inefficient at maximizing portfolio growth when held in an IRA.