Profit from the majesty of simplicity and parsimony.
— John C. Bogle, The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns, 2017
Complex tax planning strategies rarely generate meaningful savings after accounting for their direct costs (e.g., implementation, maintenance, and accounting costs) and indirect costs (e.g., opportunity costs). However, great benefits may be derived from the use of simple and low cost tax planning strategies including maximizing the use of tax advantaged accounts (e.g., qualified plans and IRAs, after tax thrift plans, Health Savings Accounts, Qualified Tuition Programs), Roth conversions, appropriate asset location, judicious tax loss and tax gain harvesting, and use of tax efficient passive buy and hold indexing strategies.