This week I have started some year end tax planning and thanks to AI, I have also updated my investment portfolio based on some of their recommendations.
Regular readers of this blog know that I believe in the three bucket portfolio: taxable, tax deferred and tax exempt. The link in the prior sentence has some of my investment before I made changes to optimize my portfolio that are largely based on this post I made but if you prefer a longer explanation, you can watch the YouTube video below from Merit Financial Advisor on avoiding double taxation for a primer.
My Taxable Bucket
Here’s are the ETFs I have in my taxable brokerage account:
Tax Free Municipal Bond ETFs
- NEA
- MLN
Rationale: The interest income from these ETF is tax free.
International ETFs
- SCHY
- IDVO
Rationale: The dividend income from these ETFs *should* receive foreign tax credit when filing tax returns and lower tax liability.
Growth/Income ETF
- QDVO
Rationale: The dividend income partially qualifies as a qualified dividend, other parts are return of capital.
Growth ETF
- QQQ
Rationale: This is a long term hold (20+ years) for growth.
I will cover the tax deferred and tax exempt ETFs in other posts and note that this is just a list of ETFs not all my investment since I carry individual bonds, digital currencies, and dividend stocks in my taxable portfolio too but because I trade those positions there’s no point in putting them here when the could be gone next week or month. These ETFs I will hold for at least 10 years as long as something drastic or far better comes along.
Share The Wealth
Have you used AI to audit your portfolio yet? If not what are you waiting for? Get going and let me know in the comments below.