Note: This article is part of Morningstar's 2019 Portfolio Tuneup week. A version of this article appeared on Sept. 11, 2018.
Tightening up all of the costs in a portfolio is one of the best ways to enhance your take-home return. That's one of the reasons Morningstar often discusses the importance of selecting low-cost investments and limiting trading costs, and it's also a key reason we pay so much attention to tax efficiency. In addition to taking full advantage of their tax-sheltered wrappers, such as IRAs and 401(k)s, investors can reduce the drag of taxes by paying close attention to how they manage their taxable accounts.
Christine Benz does not own shares in any of the securities mentioned above. Find out about Morningstar's editorial policies.