In this dynamic investment landscape, finding strategies that both maximize returns and minimize tax liabilities is essential. While many investors are familiar with Separately Managed Accounts (SMAs), they may not fully appreciate the added value of a tax overlay strategy. Our partnership with a leading asset manager allows us to offer our clients Personalized Direct Indexed SMAs equipped with a proprietary tax overlay system, creating a powerful investment solution.
How it Works?
Tailored Portfolios, Optimized Returns
- Direct indexed SMAs allow you to create a portfolio that closely tracks a chosen index, such as the S&P 500®, while giving you the flexibility to exclude specific stocks or sectors based on your personal values or financial goals. This customization ensures your investments align with your unique needs.
The Power of Tax-Loss Harvesting
- The proprietary tax overlay system employs a sophisticated tax-loss harvesting strategy throughout the year. By selling investments that have experienced losses, we can offset your taxable gains, reducing your overall tax liability. The experienced trading team ensures this process is executed efficiently and systematically, maximizing your tax savings.
Real-World Results!
- In 2023, an account utilizing this tax overlay service returned 25.97% gross of fees, nearly in line with the S&P 500® Index's 26.77%. While the slight underperformance is noted, the SMA was able to build up significant tax assets over the course of the year, helping investors lower their taxable gains while realizing the upside of the index.
Key Benefits:
Help Maximize your after-tax wealth
- Access a robust toolkit of tax-managed overlay services designed to potentially maximize after-tax wealth.
Develop an optimal tax-efficient transition plan
- Reposition your equity portfolio with appreciated low basis shares and embedded gains tax-efficiently on a timeline, tax or capital gain budget dictated by you.
Align your investments with your preferences
- Restrict purchases or exclude holdings of specific stocks, industries , categories or themes in your customized portfolio.
Diversify a concentrated stock position
- Build around a concentrated stock position with a low-cost basis that would trigger significant capital gains if you sold it.
Limit purchases in stocks or industries you already own
- Limit additional ownership in restricted stock in a company to which you already have exposure.
Ready to Learn More?
If you are interested in exploring investment options that can both increase your returns and minimize your taxes?