More than tax-loss Harvesting!
We use six techniques in your managed portfolio at different times throughout the year to help improve after-tax returns.
Personalized Strategies
Our team takes a personalized approach, tailored to your unique financial situation and investment preferences.
A Proactive Approach
Portfolio managers review all your holdings, including individual purchase dates, in search of opportunities designed to reduce the impact of taxes on your investments.
Improving after-tax returns may have a significant long-term impact! The chart below is designed to help demonstrate how tax-smart techniques can help add value, which can compound over time.
Tax-loss Harvesting: Unlike some investment firms, which wait until year-end to search for tax-loss harvesting opportunities, we're looking at your managed portfolio throughout the year. This enhances our ability to offset any realized gains you may have in your account.
Manage Capital Gains: When selling investments in your account, we'll generally first look to sell those that you've held for a longer time, allowing us to take advantage of lower long-term capital gains tax rates.
Manage Mutual Fund Distributions and Eliminate Internal Expenses: We work to manage your exposure to income distributed by mutual funds in which you're invested, due to either capital gains or because the securities held by those funds pay dividends or interest.
Invest in Municipal Bonds: When selecting bonds for your account, we consider several different factors. When it makes sense, we may purchase municipal bond funds that generate interest that may be exempt from federal taxes and, in some cases, state taxes.
Transition Management: When it makes sense in the context of your chosen investment strategy, we search for ways to integrate your existing holdings into your managed account as opposed to selling all of your existing investments in order to "start from scratch." This can help reduce the potential tax consequences of creating your personalized investment strategy.
Tax-smart Trust Distributions: If you take money from your account, we'll seek to reduce the tax consequences of that. If withdrawals are planned, we'll seek to keep sufficient cash in your account. If they're unplanned, and we must sell securities to fund them, we’ll work to reduce the tax impact of those sales.
For informational purposes only. Returns for individual clients will vary. Each line represents the value from tax-smart investing techniques at various starting dates, assuming an initial account value of $1 million. Based on the performance of a composite of accounts managed using the following strategy characteristics: Growth with Income asset allocation using tax-smart investing techniques, the total return investment approach and blended investment universe, investing in municipal securities, and separately managed accounts (“SMAs”). Please be aware that the value of tax-managed investing techniques would be different, perhaps significantly, for an account that is not managed using the same configuration of strategy characteristics as the composites shown above.
The Growth with Income asset allocation, total return investment approach, and blended investment universe were chosen because they are the most commonly used asset allocation, investment approach, and universe in the program.