Professional investment manager Stewart Strawbridge founded Selkirk Management, LLC, with two other experienced investors in 2008 and has been managing member since then. Stewart Strawbridge’s main goal with his Selkirk partners was to build a management team that helps clients achieve a long-term portfolio that minimizes taxes and maximizes returns.
High-income earners must fully comprehend the tax laws and regulations that apply to them, because the more taxable income they earn, the greater their federal income tax burden. Fortunately, there are various tax-cutting techniques such earners can adopt to construct portfolios that minimize their tax burdens and maximize returns. Using tax-deferred accounts such as 401(k)s and IRAs can be an excellent way for earners to shelter their investments from taxation. Tax-deferred accounts have no taxes owed on their transactions. The account owner only pays taxes when they withdraw money during retirement, meaning they can save more in taxes to reinvest and build their portfolio. High-income earners can also use tax-loss harvesting strategies to offset capital gains taxes. Tax-loss harvesting entails selling securities or mutual funds at a loss to offset a realized gain elsewhere in the portfolio. For instance, if an investor sells a stock for a profit, they can use the loss from another stock to offset the profit from the first stock. Selling investments that have lost value can offset gains from other investments, ultimately reducing the overall tax bill. Another way to create a tax-efficient portfolio is to hold investments for the long term to take advantage of lower capital gains tax rates. By adopting a buy-and-hold strategy, investors are eligible for the long-term capital gains rate, which is typically lower than the ordinary income tax rate.
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AuthorStewart Strawbridge rode The Bruce to victory in the 111th running of the Maryland Hunt Cup in 2007 Archives
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