Tax Sensitive Asset Allocation

Maximizing after-tax performance, we call that Intelligent Investing.

Asset “Location” – Going Beyond Asset Allocation

Asset allocation is considered by many as the best means of managing portfolio risk. This process of diversifying investment capital among multiple asset classes is an effective technique to potentially increase portfolio returns and mitigate risk.

Unfortunately, asset allocation has one major shortcoming – it ignores tax consequences. Asset allocation alone fails to consider the tax characteristics of different asset classes, which can hinder returns. Our investment advisors go beyond diversifying portfolios and also incorporate asset “location” strategies to optimize after-tax returns.

Increasing Returns, Without Increasing Risk

In practice, asset “location” considers the placement of your investments based on their tax efficiency. Asset “location” is simple in theory; however, it is not always properly understood or correctly implemented. Our understanding of both the tax code and the value of properly locating investments can help to increase your long-term wealth without incurring additional portfolio risk.

A Timely Investment Strategy

With tax rates likely to rise in the coming years, the practice of asset “location” will become increasingly important to maximizing investment returns. Proper planning can lead to significant savings in the future.

For a complimentary analysis of your portfolio’s tax efficiency, contact us.