Broker Check

Tax-Managed Investment Advice

Year Round Tax-Efficient Overlay

Most advisors don’t pay as much attention to taxes as they should.

How much damage could be done without tax management?  A $100,000 portfolio invested in 60% stocks and 40% bonds in 1979 would have grown to about $4 million before taxes by 2015.  However, with no efforts to mitigate the tax effect, Uncle Sam would have eaten 60% of the gain, lowering the investor's wealth to just a little more than $1.6 million.  Taxes may seem like something you have to deal with here and there, but over time they can amount to real money.

Source: Parametric Portfolio Associates. Based on a hypothetical tax-free $100,000 portfolio invested 60% in stocks (based on the Russell 3000®) and 40% bonds (based on the Barclays Aggregate) with (1) no liquidators; (2) interest income and dividends taxed annually at historical top marginal tax rates; (3) capital gains realized at 50% per year and taxed at the historical long-term capital gains tax rate; and (4) portfolio is held for 36 years from (1979–2015). The intent is to portray a worst-case scenario. The portfolio would have grown from $100,000 to about $4.0 million. If the portfolio was taxed as indicated above, it would have lost 60% of its value, due to taxes paid and earnings lost on that money. Tax-managed investment strategies are designed to minimize capital gains distributions and maximize after-tax returns. Past performance is no guarantee of future results. There are risks involved with investing, including loss of principal. Index returns are for illustrative purposes only and do not represent actual fund performance. Index performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results.


Most people view tax planning as something they do as an aside, as something they do in November or December. At our firm, tax planning is the foundation and part of every single decision we make about our clients’ wealth. Being mindful of after-tax performance all year round may dramatically improve your ability to enhance your wealth. This is the advantage of working with a wealth advisor who is also a CPA, and supported by a team of CPAs.


These are some of the ways you may benefit from our tax management overlay year round.

  • Tax-lot accounting

  • Tax-loss harvesting

  • Tax-aware trading

  • Managing the holding period of investments to defer gains to the long term

  • Charitable donations to create tax-advantaged giving strategies

  • Making wise decisions about selling securities for portfolio income

  • Concentrated position management

The difference it makes for our clients:

  • Clients receive up to date information about tax laws and it will be communicated to you in familiar terms that won’t be overly technical.

  • Instead of waiting for your semi-annual or year-end review, any changes that need to be made are brought to your attention promptly.

  • Affluent individuals stand to lose the most in taxes and can realize high return on investment from time spent on tax planning, much higher than any return expected from their investments.

  • There can potentially be savings in fees from working with a combined CPA and investment professional.