Wealthier investors tend to have more complex tax challenges. You can have a more informed conversation with your client by discussing the investment approaches that can work to their advantage.

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Key Takeaway

By understanding how these approaches can help reduce taxes, you can build a better tax experience for your clients.

4 Approaches to Discuss With Your Clients

Select each topic to learn more about how it fits into your client’s year-round tax management.

Approach

Start the concentrated stock conversation

Approach

Start the concentrated stock conversation

Why This Matters

Talk to clients who receive equity awards as part of their compensation packages about the risks associated with concentrated stock positions and the benefits of diversification.

Approach

Realize tax losses to reduce taxable gains*

Approach

Realize tax losses to reduce taxable gains*

Why This Matters

Offer year-round portfolio management that uses tax-loss harvesting to proactively offset the impact of capital gains taxes.

Approach

Maximize charitable giving opportunities

Approach

Maximize charitable giving opportunities

Why This Matters

Educate charitably inclined clients on the range of investment approaches that can have tax advantages for their charitable giving.

Approach

Identify the right tax advantaged accounts

Approach

Identify the right tax advantaged accounts

Why This Matters

While asset allocation decisions may explain the majority of a client's pretax returns, asset location will strongly influence what remains after taxes.

Next Step

Consider which of these approaches are most relevant to discuss with each of your clients.

*Tax-loss harvesting isn’t beneficial in a retirement account because the losses generated in a tax-deferred account cannot be deducted.

KEEP LEARNING

Taxes Matter: Three Questions to Ask

 

The Firm does not provide tax advice. The tax information contained herein is general and is not exhaustive by nature. Tax laws are complex and subject to change. Investors should always consult their own legal or tax professional for information concerning their individual situation.