Morningstar's Tax Relief Week 2015
Feb. 23-27: Our tips and picks for tax-sheltered and taxable accounts, tax-efficient portfolio planning, and saving taxes in retirement.
Special Report
Despite sounding somewhat loopy, former Secretary of Defense Donald Rumsfeld's now-famous quote about "known knowns," "known unknowns," and "unknown unknowns" has a certain resonance for investors.
For instance, a "known known": Interest rates are still pretty low today.
A "known unknown": We know the Fed will raise rates, but we don't know when exactly.
An "unknown unknown": Any exogenous event that might cause rates to move lower (against conventional wisdom) or suddenly spike higher faster than expected.
The market can easily price in known knowns and is pretty decent at estimating known unknowns. But those unknown unknowns can really sting and, by definition, they're impossible to predict.
Nonetheless, investors have several tools to deal with the unknown. Diversification can help: No matter what happens, something in a well-diversified portfolio should be holding its own, if not increasing. Low fee investments are another: We may not be able to control market losses, but we can limit how much we lose to overpriced investments.
Another important tool is tax planning. A tax drag may be unnoticeable in a strong market, where gains come easy, but it adds up over time nonetheless.
There's no reason to wait for a market correction to get lean and mean. We investors don't know what headwinds will come. We don't know when. We don't know how strong. All the more reason to streamline everything else we can control.
All this week, we'll be helping you make a plan for tax efficiency--that means maximizing tax shelters, optimizing taxable holdings, finding tax-smart investments, and building a tax-savvy portfolio. Stay tuned: We'll be updating this page all week with a new set of daily reports.
Monday: Your 2015 Tax Checklist
Get the latest tax facts, limits, and changes for 2015; glean insights from your 2014 return; and set your tax priorities with our Monday reports.
Tax Priorities for Investors at Every Life Stage
From your 20s to your 70s, these tax tactics can help you keep more of your investment earnings.
Your 2015 Tax Fact Sheet and Calendar
A one-stop guide to key facts and important tax dates to remember for 2015.
What Investors Can Learn From Their 2014 Tax Returns
Completed returns can yield clues to help you maximize your take-home investment returns.
2015 Taxes: What's on Deck for Your Investments
Higher 401(k) contribution limits, myRA introduction are among bigger tax changes for new year.
Tuesday: Tightening Up Tax Shelters
Morningstar strategists, including Russ Kinnel and Josh Peters, offer up their best ideas for your IRA on Tuesday. Plus, top 401(k) and IRA mistakes to avoid.
3 Dividend Picks for Your IRA
Reinvested dividends from GE, P&G, and Spectra Energy could boost an IRA over the long term, and the stocks also trade at attractive valuations today, says Morningstar's Josh Peters.
A Few of Our Favorite Funds for IRA Investors
Morningstar's Russ Kinnel and Christine Benz highlight a more conservative, all-weather fund; a high-quality dividend-payer; and a higher-risk but well-managed bond fund as solid choices for an IRA.
401(k) Investors: Avoid These 20 Mistakes
While company retirement plans often have guardrails, investors can goof with contributions, investment selections, loans, and withdrawals.
20 IRA Mistakes to Avoid
From contributions to conversions to distributions, don't fall into these traps.
Pay Some Tuition in Cash, Get a $2,500 Tax Rebate
Families with incomes of up to $180,000 can take advantage of the American Opportunity Tax Credit to recoup some college costs, but the measure is set to expire after 2017.
Wednesday: Optimizing Taxable Accounts
On Wednesday we'll mount a defense of taxable accounts (which have their own virtues for investors), along with some of our favorite tax-efficient picks.
5 Picks With a Side of Tax Efficiency
We serve up some solid ideas for taxable accounts among muni funds, tech stocks, MLPs, and core broad market ETFs.
Top U.S. Equity Funds for Your Taxable Account
These offerings combine low tax-cost ratios and strong performance in the same package.
Will Muni Funds Continue Their Run?
After a strong 2014, we're keeping an eye on interest rates and issuance, which could both creep higher and sting in 2015. Plus, two muni-fund picks worth a look today.
6 Key Reasons Why Investing in a Taxable Account Is Underrated
Currently low tax rates are one of the key reasons that taxable accounts should be part of most investors' tool kits.
Thursday: Building Tax-Efficient Portfolios
Christine Benz, our director of personal finance, will demonstrate how to put the pieces together with tax-wise model portfolios for both retirees and retirement savers.
3 Tax-Efficient 'Bucket' Portfolios for Retirees
Our model portfolios are designed to facilitate in-retirement cash flows--and to limit Uncle Sam's take.
3 Tax-Efficient Retirement Saver Portfolios
We've designed these portfolios to maximize returns while limiting Uncle Sam's take.
Are You Holding Your Assets in the Right Types of Accounts?
Taking care with asset placement can result in big tax savings.
Sell Underperforming Funds With Large Personal Unrealized Capital Gains?
Guidelines to help determine whether to stay put or sell.
Friday: Saving on Taxes in Retirement
Friday will focus on tax-smart withdrawals and estate planning for retired investors in drawdown mode.
The Tax Break That Doesn't Die With You
Widowed investors are at risk of missing an important tax break because they aren't aware of a key deadline.
5 Best Practices for Limiting Your Tax Burden in Retirement
A flexible withdrawal strategy, diversification across account types, and targeted Roth conversions can limit the tax drag for retirees, says Morningstar's Christine Benz.
Get a Tax-Smart Plan for In-Retirement Withdrawals
Consider these strategies to stretch out your tax savings during your retirement years.
Don't Be Dogmatic About Retirement-Portfolio Withdrawals
In high- (or low-) tax years, retirees may have reason to flout the rules of thumb on withdrawal sequencing.
 | Morningstar Individual Investor Conference March 21, 2015 | 9:00 a.m. CDT Get a fresh outlook on the market and your investments at our FREE online conference. Join us for a day tailored to help individual investors strengthen their finances by uncovering strategies for building better portfolios from a variety of Morningstar's analysts and noted outside experts.  |