TAX-AWARE INVESTING TO OPTIMIZE Return

TAX-AWARE, NOT TAX-DRIVEN

Unlike many investment management firms, we focus on “real” return: what our clients earn after income and capital gains taxes, fees and the impact of inflation. It’s usually not wise to opt only for tax-exempt or lower-tax options, since these may not always produce competitive after-tax returns. So for our clients in Seattle and elsewhere, we use both tax-exempt and taxable investment planning strategies, depending on which is the most advantageous in terms of real return and each client’s needs.

TAX-PLANNING STRATEGIES

As an investment management firm, we carefully consider the tax consequences of dividends, income and capital gains for each client portfolio. The tax planning strategies we use include:

  • Matching tax-generating assets with tax-advantaged accounts.
  • Offsetting gains with losses whenever appropriate.
  • Using tax-exempt and tax-advantaged investments as warranted.
  • Selecting top-performing asset managers who actively seek to minimize capital gains and dividend distributions.
  • Closely monitoring the after-tax return on your investments and reporting taxable distributions to your accountant.

Research has shown that tax-aware investing can significantly contribute to the long-term growth of a portfolio.