Morningstar's Tax Relief Week 2014

It's often said that "the tax tail should not wag the investment dog." In other words, if you need the long-term growth potential of stocks in a retirement portfolio, you should own stocks. If you have shorter-term goals and need the milder profile of bonds, buy bonds. Tax efficiency shouldn't be a litmus test.

But as any sharp financial advisor (and undoubtedly most canines) would be quick to point out, neither should you crop off the tax tail with no second thought.

Once you have a plan that works for your goals, streamlining with an eye toward tax efficiency has a very real benefit--namely, enhanced aftertax returns. 

How enhanced? Morningstar Investment Management's head of research, David Blanchett, quantified the benefits that smart financial planning--including tax planning--can have on a portfolio in a metric called "gamma." In a 2013 research paper, he found that asset location (purposefully putting certain kinds of investments in certain types of accounts for tax efficiency) and sequencing withdrawals in retirement from some accounts before others can generate more than 3% additional income for an investor in retirement. Given how low yields still remain, that's nothing to sneeze at. (See the whole research report for more on tax efficiency and the other components of gamma.)

What's more, you don't have to be an investing whiz, a market guru, or the next Warren Buffett to benefit from better tax practices. The return you'll get from efficient planning is achievable by anyone who puts their mind to it. 

During Morningstar's Tax Relief Week 2014, we helped investors grab more gamma with a sensible plan for investment-tax management both before and during retirement. We detailed the latest tax changes, offered up some of our favorite tax-efficient picks (for taxable accounts), as well as topnotch ideas for your IRA. 

Highlights: Investment Picks

• 6 Top Picks for Your IRA
• A Tax-Friendly Short-Term Portfolio for Taxable Accounts
• These Funds Can Reduce Your Tax Headache
• Medalist Muni Funds for Your Consideration
• Conservative, Moderate, and Aggressive Tax-Efficient Portfolios for Retirees

Highlights: Strategy Tips

• IRA, 401(k), 529: What's the Best Tax-Sheltered Account Type for You?
• 10 Missteps With Tax-Sheltered Accounts
• 5 Ways to Shrink Your Tax Footprint
• 6 Ways to Curb Taxes in Retirement
• Get a Tax-Smart Plan for In-Retirement Withdrawals

Monday: Keep Tabs on Key Tax Trends

• What Your 2013 Tax Return Is Telling You
• What's on Deck for Investment-Related Taxes in 2014
• How to Control Your AMT Exposure
• Is the AMT Costing Me More in Capital Gains Taxes?
• A Tax Checklist for Same-Sex Couples

Tuesday: Maximize Your Tax Shelters

• IRA, 401(k), 529: What's the Best Tax-Sheltered Account Type for You?
• 10 Missteps With Tax-Sheltered Accounts
• 6 Top Picks for Your IRA
• What Goes Where? The Art of Asset Location
• The Ins and Outs of IRA Conversions
• What Not to Put in Your IRA
• How Saving Too Much in Your 401(k) Could Cost You

Wednesday: Optimize Taxable Accounts

• 5 Ways to Shrink Your Tax Footprint
• A Tax-Friendly Short-Term Portfolio
• These Funds Can Reduce Your Tax Headache
• When Should You Save in a Taxable Account?
• How Tax-Efficient Is Your Mutual Fund?

Thursday: Make Munis Work for You

• Medalist Muni Funds for Your Consideration
• Do You Understand What's in Your Muni Fund?
• How Enticing Are Munis Today?
• Tips for Investing in the Current Muni Market
• Do Municipal Bonds Have a Place in My Portfolio?

Friday: Save on Taxes in Retirement 

• 6 Ways to Curb Taxes in Retirement
• Readers' Top Ideas for Curtailing Taxes in Retirement
• Get a Tax-Smart Plan for In-Retirement Withdrawals
• Is Your Retirement Portfolio Ready to Do the 'Twist'?
• Dos and Don'ts for Leaving IRA Assets to Your Loved Ones
• Conservative, Moderate, and Aggressive Tax-Efficient Portfolios for Retirees