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4 tips for investors who want to cut or avoid taxes on their assets

Inflation is on everyone’s minds right now, but taxes also erode the value of your assets, including investments.

“Investors have good reason to police all the costs that they pay, including tax costs,” noted researcher Morningstar in a new guide that deals with taxes and investing.

There are two key types of taxes for investors to beware — those on capital gains and ordinary income — while different assets and types of accounts receive varying tax treatment.

“Some investors might be doing it wrong when it comes to asset-location decisions,” said Morningstar, citing, as an example, investors who think they should keep most or all of their stock-market holdings in tax-sheltered retirement accounts.

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