How to get more tax protection?

[camberiu]

OK,

So after all my expenses, I still have a couple thousand dollars left every month. I already max out my 401K and my Roth IRA contributions. I was putting my money on several ETF's, but the dividends are adding up and increasing my taxable income. Are there any other investments that I should consider to minimize my tax exposure? I am aware of government bonds, but the return on those are pretty lame right now. Anything else that I am missing? Please advise.

 

[brewer12345]

Don't let the tax tail wag the investment dog. Maximize after-tax risk-adjusted return, don't minimize taxes.

Or there is always Beev3r Cheeze futures. The capital losses they generate will nicely offset your other taxable income.

 

[Jay_Gatsby]

What about tax-free state/municipal notes/bonds? There are some that renew at periodic intervals and throw off ~4% tax free.

 

[LOL!]

...
I was putting my money on several ETF's, but the dividends are adding up and increasing my taxable income. Are there any other investments that I should consider to minimize my tax exposure?

We've got the same problem. I am selling my Dodge&Cox balanced which I bought before they closed. I intend to cut back to the minimum allowed for that fund in case I want to get back in the future. All my fixed income assets (except emergency fund) will then be in my tax-deferred accounts. But those ETFs like SPY, MDY, IWM, EEM, and PID do put out a chunk of dividends each year (no cap gains distributions though). The dividends may thwart my plan to convert tIRA assets to Roth IRAs tax-free in the future.

Perhaps a tax-managed Vanguard fund is in order? I will have to look into that.

 

[Peaceful_Warrior]

All my fixed income assets (except emergency fund) will then be in my tax-deferred accounts.

Any recommendations for fixed income emergency fund stuff? Right now mine is in Fidelity Tax Free MM...

 

[Darryl]

What kind of Insurance do you have? I'm knocking my AGI down $5,150 bucks by maxing out my HSA (employer kicks in $500).

 

[riskadverse]

Stocks that have no dividends. You can keep them tax defered until you die. Ibonds used to be great and tax defered, but I don't think they are competitive now though.