4 tips to minimize taxes when investing

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Taxes are a reality you cannot escape, even when it comes to investing. While they may not be top of mind when you are focused on returns, how much you are paying in taxes can be “a significant headwind to long-term returns,” said Fidelity.

By paying attention to how much of your investment income is getting diverted to taxes, you will not only save on that expense — you can also increase your returns. That is because “money that isn’t paid in taxes can stay invested, offering the potential for extra growth and compounding.” Down the road, this can potentially have “a significant impact on the total value of a portfolio,” said Fidelity.

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