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In this episode, we break down tax-efficient investing for ODs, showing you how to pair the right investments with the right accounts to maximize your after-tax wealth over your career.

What You'll Learn

Taxes can be the difference between two optometrists with identical investment returns ending up with vastly different retirement wealth. This episode breaks down how to invest tax-efficiently by pairing the right investments with the right accounts.

You'll learn which investments create tax-inefficient income (bonds, REITs) versus more favorable income (stock index funds), and the strategy for placing them across your taxable accounts, pre-tax retirement accounts, Roth accounts, and HSAs.

The key is treating all your accounts toward the same goal as one coordinated household portfolio instead of managing each separately.

Key Takeaway

Don't let the tax tail wag the dog. Start with good, prudent, evidence-based investments - then optimize their placement to minimize taxes along the way. The goal isn't to avoid all taxes; it's to maximize your after-tax wealth over your lifetime.

Episode Chapters

[00:00] Introduction: Why tax-smart investing matters for ODs
[03:00] Why taxes matter: The real drag on your investment returns
[05:00] Tax Layer 1: Understanding investment account types (taxable, pre-tax, Roth, HSA)
[06:00] How different types of investment income get taxed
[10:00] Tax Layer 2: Tax characteristics of stocks, bonds, and REITs
[12:00] How fund management impacts your tax bill
[16:00] Asset location strategy: Putting it all together
[20:00] Common constraints and considerations
[22:00] Mistakes to avoid when managing multiple accounts
[24:00] Conclusions: Focus on good investing while managing taxes

Resources Mentioned

Free Download: Get Your OD's Guide to Tax-Smart Investing

Inventory your accounts
Identify tax-inefficient holdings
Evaluate if investments are in the right places

Ready for a Second Opinion?

Want help reviewing your current setup? Reach out for a no-pressure conversation about whether your investments are working as tax-efficiently as they could be.

Click Here to schedule your free consultation!

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The Optometry Money Podcast is dedicated to helping optometrists make better decisions around their money, careers, and practices. The show is hosted by Evon Mendrin, CFP®, CSLP®, owner of Optometry Wealth Advisors, a financial planning firm just for optometrists nationwide.