Volatility Adjusted Returns
In this episode, John Smallwood of Smallwood Wealth Management discusses the impact of taxation on the compounding of wealth, and volatility adjusted returns.
John is the author of 5 Ways Your Wealth is Under Attack. He has lectured extensively on financial planning and has received the Five StarSM Wealth Manager Award for 2011, 2012, 2013, 2014, 2015 and 2016.
John’s strength lies in his ability and commitment to continually improve the level and quality of the financial planning process. His dedication to his clients’ growth involves an evolving strategy that strives to meet the demands, desires, and needs of his clients in a continually changing economic environment.
In his latest episode, you will learn:
- That how your portfolio generates income, when it gets taxed, and how it gets taxed, are vital to the amount of wealth that you can create over time.
- That taxation of Mutual Funds, ETFs, and Unit Trusts is extremely important in understanding the turnover rates and factors that affect your portfolio.
- The immense impact that both taxation and the market volatility adjustment can have on your portfolio:
John breaks down how a $500,000 investment that grew at a 10.04% rate of return so that 20 years later is worth $3.7 million will be reduced by a little bit over two million dollars when you factor in volatility-adjusted returns and then taxation―that’s down to $1.6 million!
At Smallwood Wealth, we look at portfolios not only on a market volatility-adjusted basis, but also on a tax-adjusted basis. We always want to be focusing on how to reduce tax and how to reduce risk so that we can reduce the impact of volatility-adjusted returns.
Give us a call at 732-542-1565 to schedule an appointment or click here to download my FREE guide:
The 2018 Business Owner’s Guide To Maximizing Your Benefits From The 2017 Tax Cuts
We look forward to speaking with you.
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