Tax Efficiency

Our financial advisor team may use tax reduction strategies that include: tax loss harvesting, asset location (by account type), mutual fund turnover ratio analysis, distribution strategies, long term capital gains tax bracket analysis, roth conversions, and managing required minimum distributions. Our objective is to ensure that our clients’ investments are optimized while reducing their overall tax burden in alignment (with the advice and preferences of their accountants when applicable).

We manage portfolios and use respective investment account categories in order to rebalance within tax deferred accounts and place the least tax efficient asset classes in tax deferred accounts.  We also pay attention to tax costs when selecting funds for taxable accounts and use tax-loss harvesting to deliver tax savings.

Investment turnover in individual stocks or mutual funds can lead to short-term and long- term capital gains.  Mutual funds may have significant embedded gains and in some instances you can pay taxes for economic gains you never realized based on the timing of your purchase and the structure of mutual funds.