Tax-Free Compounding – Accumulating vs. Distributing ETFs
Compounding is a powerful wealth-creation tool. But taxes and fees can sabotage your plan.
Typically, up to 2-3% of the 7% average annual total return from Global Stocks comes in the form of dividends. But what happens to compounding if we distribute them?
Today, let’s look at how to optimise your ETF selection for the compounding magic to work without leaking too much in unnecessary taxes.