Diversification is more than cash/bonds/stocks - are you tax diversified?

1. Creating a strategy that’s right for you
Because different types of accounts and investments offer specific tax advantages, you can gain
more control over your taxes by placing your money in a variety of assets.
after-tax in tax-free out
Tax-free
after-tax in before-tax or
after-tax in
Taxable Tax-deferred
taxable out taxable out
Let’s look at your current investments and tax diversification opportunities for your financial situation.
Tax-free Taxable Tax-deferred
Current
Investments
Opportunities
Contact Peter J. Taafe, CRPC, CFP of Ameriprise Financial Services
888-399-2044 toll free & peter.j.taafe@ampf.com
www.ameripriseadvisors.com/peter.j.taafe

2. Tax diversification and your portfolio
Managing what you pay in taxes and when you pay them
can affect your ability to reach your financial goals.
The right combination of
taxable, tax-free and tax-
after-tax in tax-free out
deferred investments can
Tax-free help provide more money to
invest today and help you pay
fewer taxes on your retirement
after-tax in before-tax or
after-tax in
savings, regardless of how tax
Taxable Tax-deferred
laws change over time.
taxable out taxable out
Tax-free Taxable Tax-deferred1
Purchase investments: With dollars you’ve With dollars you’ve With dollars you have
already paid taxes on already paid taxes not paid taxes on
(after-tax dollars) on (after-tax dollars) (pre-tax dollars)
When you own investments: You may pay no taxes You pay taxes on: You pay no taxes
> Dividends as you
receive them
> Interest as it accrues
When you sell investments: You pay: You pay: You pay:
> No taxes on your original > No taxes on your original > Taxes on original
investment dollars investment dollars investment dollars
or dividends (may be > Taxes on gains, if any > Taxes on your earnings2
subject to state tax)
> Taxes on earnings or
gains, if any, depending
on the investment2
Benefits Could help you manage Tax burden is distributed > Pre-tax dollars provide
taxes when you sell your throughout the investment more money for you to
investments cycle invest toward your goals
> You may pay less in
taxes on your investment
dollars in retirement
when your income could
be lower
Limitations Post-tax dollars could Post-tax dollars could Could present a significant
leave you with fewer leave you with fewer tax burden when you sell
dollars to invest dollars to invest your investments
1
Some tax-deferred investments can be purchased with after-tax dollars, and any earnings are taxable as ordinary income when distributed.
2
May be subject to a 10% IRS penalty before age 59½.
Neither Ameriprise Financial nor its affiliates may provide tax or legal advice. Consult with your tax advisor or attorney regarding specific tax issues.
Brokerage, investment and financial advisory services are offered through Ameriprise Financial Services, Inc., Member FINRA and SIPC.
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