Do you know what a tax managed portfolio is? It’s a fund that is specifically managed by one person and, therefore, has very few tax penalties. The money you contribute is not taxed, just the earnings. And, even then, the money can’t be taxed any more than 15 percent. In addition, tax-managed portfolios are a great product to inherit because you can pass them on tax free. You must have $10,000 to open one, which can be tough for some people. But if you can afford it, you may want to buy more than one. Choices include big companies, small companies, international companies and a mix of all of the above. But how do you know where to begin? Well, if you go with Vanguard, for example, a good game plan is to go with the “Capital Appreciation” fund first. The next $10,000 would go in the international fund, followed by the small company portfolio. That way, you’re diversified across all three sectors of the financial market. Then, when it’s time to put more money in, you put half of the money you have into the first fund, and 25 percent into each of the other two. If you’re self-employed, consider a SEP and do the same thing. Good luck!