We recognize that taxes can significantly impact your investment returns and long-term wealth accumulation. As part of our Comprehensive Portfolio Management Strategy, we integrate tax-efficient considerations into every investment decision to help maximize your after-tax returns.
Our Tax-Aware Investment Approach
Our Principal-curated, customized portfolios are designed with tax efficiency at their core. Rather than simply focusing on pre-tax returns, we consider the tax implications of every investment decision to ensure your portfolio works harder for you on an after-tax basis.
Key Tax Management Strategies
Individual Stock and Bond Selection: By building portfolios with individual securities rather than mutual funds, we maintain greater control over timing of taxable events. This approach allows us to:
- Strategically harvest tax losses to offset gains
- Control the timing of dividend and interest income
- Avoid unwanted capital gains distributions common in mutual funds
Tax-Loss Harvesting: We systematically monitor your portfolio for opportunities to realize losses that can offset gains, with the goal of reducing your overall tax liability while maintaining your desired asset allocation and investment objectives.
Asset Location Optimization: We strategically place investments in the most tax-advantaged accounts (taxable, tax-deferred, or tax-free) based on their tax characteristics and your specific situation.
Long-Term Capital Gains Focus: Our emphasis on high-quality businesses with durable competitive advantages aligns with a long-term investment horizon, allowing you to benefit from preferential long-term capital gains tax rates.
Holistic Tax Integration
We are committed to your entire financial journey, and we coordinate our tax-efficient investment strategies with your broader financial picture. This includes considering your current tax bracket, retirement planning needs, estate planning objectives, and any major life events that may impact your tax situation.
Our hands-on, boutique approach ensures that tax considerations are woven throughout your personalized investment plan, helping bridge the gap between your financial needs of today and your financial vision for tomorrow.
