You live your live as socially and environmentally conscious as you can. You eat organic food, don’t buy products created in sweatshops or with child labor, and care about the environmental practices of the companies that produce the products you buy.
While selecting tax-efficient investments and making the most of tax-deferred accounts may help reduce your tax bill, it won’t eliminate taxes altogether. There are a few options available that do have the potential to generate income or earnings that you generally won’t have to pay federal income taxes on—including many municipal bonds, Roth IRAs, and college savings accounts.
As the most important aspects of investing is diversification, ETF’s allow investors to purchase an “entire sector” of the market, greatly reducing the risk associated with individual stocks in individual sectors. Because they are not actively managed like mutual funds, their annual fees are MUCH lower. As you create your portfolio of high quality, diversified investments, ETF’s are a great way to achieve diversification while having the liquidity of common stocks.