Make Your Money Work as Hard as You: Smart Tax Moves for Women

Maximize Your Investment Returns and Keep More of What You Earn

We know you’re already doing it all. No idea how you do it, but we see you. When it comes to money though, we think you should work smarter, not harder. Here are five tax strategies to optimize your investment returns while keeping more of what you’ve earned.

1. Choose Your Investment Settings Wisely: Strategic Asset Allocation

Think of your investment strategy as curating a collection of fine jewelry–each diamond needs the perfect setting to truly shine. And where you keep your investments matters just as much as what you invest in. 

• Tax-Deferred Accounts - Traditional IRAs and 401(k)s are like having a private vault where your money can grow undisturbed. You won’t pay taxes until you take the money out in retirement. This is perfect for those “high-maintenance” investments like bonds and REITs that generate regular income. Here, they can grow without annual tax interruptions. 

• Taxable Accounts - Think of regular brokerage accounts like your everyday jewelry–accessible but requiring thoughtful handling. While you’ll pay taxes on what these accounts earn, they shine brightest when filled with investments like growth stocks and ETFs that benefit from lower long-term capital gains rates. 

• Tax-Free Accounts - Roth IRAs and Roth 401(k)s are the real gems in your collection. Yes, you pay taxes upfront, but everything after that is completely tax-free. These accounts are ideal for investments with high growth potential, and the beauty is, that when it’s time to take your money out, you can do it without paying a dime in taxes.

For more sophisticated investors, alternative investments like private equity or hedge funds can also offer some unique tax advantages—but they can be tricky, so make sure you know what you’re getting into before you take the plunge.

2. Choose Tax-Efficient Investments

Let’s talk about investments that are designed with minimizing your tax burden in mind: 

• Municipal Bonds - Tax-free income? Yes, please! If you’re in a higher tax bracket, municipal bonds are your best friend. The interest income from these bonds is often exempt from federal taxes and sometimes even state and local taxes. 

• Exchange-Traded Funds (ETFs) - ETFs bring fewer tax headaches than traditional mutual funds because they let you control when you pay. You typically won’t owe taxes until you sell, giving you more flexibility and better tax control.


• Tax-Efficient Mutual Funds - Some mutual funds are specifically designed to minimize taxable distributions. If you’re looking to keep your taxes low while still having someone else manage your portfolio, these funds could be a game changer.

3. Master the Art of Capital Gains

Timing is everything when it comes to capital gains (the profits you earn from selling). Being strategic about when you sell can help you lower your tax burden. Hold investments for over a year when possible to qualify for lower long-term capital gains rates. And if you’re having a lower-income year? That might be the perfect time to sell some winners. 

4. Be Smart About Distributions 

Dividends and interest income are sweet, but require careful handling: 

• If you're used to looking at a high tax bill because your portfolio generates considerable dividend and interest income, consider qualified dividends for better tax treatment. 

• Consider investments that grow in value over time rather than paying out regular distributions.

• Structure complex investments to spread income over time. 

5. Turn Losses into Opportunities

Tax-loss harvesting is like turning lemons into lemonade. The idea is simple: you sell investments that have lost value to offset your capital gains. This can reduce your taxable capital gains and, in some cases, even offset up to $3,000 of ordinary income. Just don’t buy back the same investment within 30 days–that’s illegal. 

Your Next Move

Building wealth isn’t just about making money – it’s about keeping it and watching it grow. Investing doesn’t have to be complicated, and at AdviseHer, we’re here to make it easy, clear, and most importantly, smart. 

You’ve worked hard for your money. Now it’s time to put your money to work for you. Whether you’re just starting out or looking to take your strategy to the next level, we’re here to help. Let’s create a tax-savvy plan that works for you. Ready to get started? Contact us today, and let’s make your money work harder and smarter for you!