Larger fees for larger after-tax returns?

I’ve read many of your columns on how management fees can take a large percentage of your profits and that actively managed funds actually cost you profits over the long run, instead of making money.

But now I’ve been told of a new twist, concerning tax-managed funds. In these funds, the adviser says he can maximize your after-tax profits by buying and selling stocks to create a favorable tax position. Any history to support or deny their assertions? Your thoughts on whether profits can be enhanced by paying larger fees to obtain better aftertax returns? — B.D., by email There are two issues here. The first is: What are the immediate benefits of tax management, usually called taxloss harvesting? This year, for instance, you might sell a stock that has lost value to offset the gain realized on another stock. The net result would be no tax cost for the current year. That can look really good. But it overstates the benefit because the same trade has also lowered the cost basis of your investment. In effect, you’ve traded a current tax bill for a future tax bill. Long term, the benefit is quite small. But don’t take my word for it.

The topic is well covered by financial planner Michael Kitces on his website (kitces.com/ blog/evaluating-the-tax-deferral-and-tax-bracket-arbitragebenefits-of-tax-loss-harvesting). The whole business of taxloss harvesting is complicated, and Kitces examined the question because some extravagant claims have been made. The net long-term benefit, he figures, is fairly small, less than one-half of 1 percent.

The second issue is how much do you have to pay for a service that is worth less than half of 1 percent?

If tax-loss harvesting is included in a managed fund or portfolio that costs you, say, 1.5 percent a year versus a cost of less than 0.10 percent for a very tax-efficient broad index fund, you’re paying 1.4 percent for something worth quite a bit less.

This is a good place to be reminded of what Warren Buffett calls his favorite investment holding period: “forever.” Like many things in investing, tax-loss harvesting sounds a lot better than it really is.

I am 79 and my car is 14. Would it be financially wise to lease a car rather than buying one since it is not likely that I will be driving for another 14 years? — J.B., by email

Hey! You’re not dead yet. There may be more than one car in your future. In any case, it’s a very good bet that there would be more than one car lease in your future.

If you check the life expectancy of a 79-year-old male as calculated by Social Security actuaries, you’ll find that life expectancy is 8.66 years.

Life expectancy doesn’t mean you’ll fall down and die at 87 years 8 months. It means that you have a 50 percent chance of living longer. That could be translated into four 24-month leases or more than two 36-month leases.

So unless you really enjoy visiting car dealerships and repeating an experience that can be traumatic, annoying or long enough to read “War and Peace,” I suggest that you pick a car you like, buy it and keep it.With any luck, you’ll drive it and love it until the day they won’t let you drive anymore.

“Ask Brianna” is a Q&A column for 20-somethings, or anyone else starting out. I’m here to help you manage your money, find a job and pay off student loans — all the real-world stuff no one taught us how to do in college. Send your questions to askbrianna@nerdwallet.com.

I just graduated from college and I’m starting my first full-time job soon. Is there a breakdown of how much of my paycheck I should save and spend?

My first paycheck after I graduated college felt like a gift from the gods of adulthood: The magic of direct deposit meant money suddenly appeared in my bank account every two weeks. But no one told me what to do with it.

I didn’t know how to balance saving for a house in the future with buying a ticket to Lollapalooza now. I didn’t sign up for my workplace retirement account and missed out on crucial years of retirement savings. I carried a hefty credit card balance.

If you’re not sure where to start, follow this three-step plan:

Step 1: Know how much you earn.

The Class of 2016 is more likely to get a job that pays decently than I was when I graduated in 2009, in the teeth of the recession. Just 4.6 percent of bachelor’s degree holders ages 22 to 27 were unemployed in December 2015, down from a high of 7.1 percent in February and March 2011, according to the Federal Reserve Bank of New York. Median annual wages were $43,000 in 2015 for the same group, the highest since 2003.

To start using that money wisely, take a look at how much you bring home. After taxes and deductions for things like health insurance, the amount you see in your bank account is likely to be 65 percent to 70 percent of your gross pay, says Bruce Elliott of the Society for Human Resource Management.

Comb through your paycheck or your bank statement and find your net pay. That’s how much you have to work with when you’re deciding what to spend and save.

Step 2: Use a loose guideline — not a spreadsheet.

I don’t keep a tight budget. But you don’t need to use a spreadsheet or a fancy budgeting app to know where your money goes.

The 50/30/20 rule can give you a rough idea of how much to spend on rent or how much to save for retirement. Say your salary is $43,000 a year and you take home about $30,000. That’s $2,500 a month. Here’s how you’d split it up:

■ Spend 50 percent of your take-home pay (in this case, $1,250) on necessities: rent, food, transportation and bills.

■ Spend 30 percent of your paycheck ($750) on fun stuff like concert tickets or Netflix.

■ Put 20 percent of your income ($500) toward savings or getting rid of debt. Your priorities: Setting up an emergency fund, saving 10 percent for retirement and paying off your credit card balance.

Step 3: Make saving automatic.

Big expenses, like furniture for a new apartment, might start to eat into that 20 percent savings number. Set up automatic transfers from checking to savings so the money adds up when you’re not looking.

You don’t have to think of the 50/30/20 plan as a budget. It’s a way to be mindful of the cash you bring in — and prove to your parents at Thanksgiving that there’s at least one part of this adulthood thing you’ve got down.