“Over the long term, benign neglect really does pay off.”
—Charles D. Ellis, author of Winning the Loser’s Game
It should come as no surprise that taxes rank as either #1 or #2 on the list of expenses for wealthy Americans. Today, taxes are my family’s second-biggest leakage behind spending, and without careful planning, they would be the biggest. In 2013, in all likelihood taxes on the wealthy are going to go up, possibly a lot.
By comparison, many institutional investors—pension funds and endowments, for example—with billions of dollars in investments don’t pay any taxes at all.
So what can you do responsibly to minimize your taxes?
Although tax efficiency is a critical element in your investment strategy, most investment ...