Robo-Advisors - Quiz 10/25 - Guide for Beginners

Beyond Tax-Loss Harvesting
While tax-loss harvesting is a popular feature, some robo-advisors take tax optimization a step further by strategically selecting investments to minimize your tax liability.

Municipal Bonds: A Tax-Efficient Choice
Robo-advisors may include municipal bond funds in your portfolio. These funds offer interest payments that are exempt from federal taxes, making them attractive for taxable accounts.

Asset Location Optimization
Some platforms consider asset location, strategically placing investments in different account types (taxable vs. tax-advantaged) to maximize tax efficiency.

Keeping More of Your Returns
By minimizing your tax burden, robo-advisors help you keep more of your investment gains, ultimately boosting your overall portfolio growth.