What is NOT a tax reduction strategy?

High turnover investments are typically associated with increased transaction costs and capital gains that may result in a larger tax liability, rather than providing any tax reduction benefits. In a high turnover strategy, assets are bought and sold frequently, which can trigger short-term capital gains taxes for individuals. These gains are generally taxed at a higher rate compared to long-term capital gains.

In contrast, tax-free savings accounts, tax-exempt bonds, and estate planning or gifting strategies are all well-known approaches to reduce tax liabilities. Tax-free savings accounts allow individuals to earn interest tax-free, while tax-exempt bonds provide tax-free interest income. Additionally, estate planning and gifting can help minimize estate taxes and allow assets to be transferred tax-efficiently. Therefore, among the options presented, high turnover investments do not qualify as a tax reduction strategy.