Many are unaware of how taxes can impact long-term investment returns. A poor tax strategy can lead to financial losses each year. Strategies like tax-loss harvesting can help investors reduce tax burdens and increase after-tax gains, benefiting both the wealthy and average investors. Automated tools like Betterment can assist in implementing these strategies effectively.

Long-term investing requires a mindset that can weather market volatility. Having a strategy and sticking to it can lead to building lasting wealth. By understanding account types, utilizing tax-efficient investments, and using robo-advisors for tax optimization, investors can reduce their tax burden and maximize earnings.

With the right tools and mindset, any investor can navigate the complexities of tax-smart investing. This article is part of GOBankingRates’ Top 100 Money Experts series, providing expert answers to common financial questions. Always consult with a financial advisor before making investment decisions to ensure individual circumstances are considered.

Read more at Yahoo Finance: What the 1% Know About Taxes That You Probably Don’t, According to an Expert