Tax Efficiency Planning = Better Tax Outcomes
In today’s bear market, tax efficiency management is used to harvest losses and adjust assets in portfolios. While a client is reaping long-term gains, paring losses can reduce tax liabilities. After all, volatility and tax management co-exist together. Planning for tax efficiency in your portfolio during times of volatility is essential and can be accomplished by working with your financial and tax professionals’ advice.
What do advisors help their clients consider for their portfolio’s tax-efficiency management?
- A household performance overview.
- A house holding tax feature.
- The tax consequences of trading and rebalancing.
- Tax-efficient portfolio creation.
- Taxable YTD reporting.
- Realized and unrealized gains and losses.
- Dividends and distributions YTD.
Having the insight to make decisions at a moment’s notice to produce income while accounting for taxes is critical during any market condition. Discussing tax-savings strategies with your advisor proves to be valuable over the course of your portfolio’s duration as its value increases over time.
Financial professionals’ tax efficiency tools can also help provide insight into distribution demands if you’re retired. Portfolio creation that is both tax-efficient and goal-oriented can be accomplished by working with your financial and tax professionals throughout retirement.
Tax efficiency is a portfolio management ‘best practice’ that can save investors’ money through understanding an investor’s portfolio tax picture. Tax efficiency is essential to managing a portfolio’s unrealized and realized gains down to the individual lots.
If you have questions about tax efficiency planning in your portfolio, contact our office to schedule a meeting at your convenience.
Important Disclosures:
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.
This article was prepared by Fresh Finance.
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