´╗┐Taxes are always a concern for sophisticated investors. As a tax-aware advisor, here are a few questions to help start the tax conversation and deepen your client relationships.

Which do you think detracts more from investment performance: fees or taxes?
Many clients believe high asset management or advisory fees are the biggest drain on investment returns, but the reality is that in many cases, taxes can reduce investing gains more than any other cost, and they can be the easiest cost to reduce.

Are you aware of how much taxes impact your investment returns each year?
Capital gains taxes can have a substantial impact on portfolio returns. Introduce your clients to the concept of after-tax returns and how, through tax-aware investing, you can provide a year-round approach that helps them keep more of what they earn.

Would you like to reduce the amount you pay in investment taxes each year?
For example, in a taxable portfolio, you can offer tax-managed services like tax loss harvesting which you can utilize all year long on their behalf.

Set yourself apart from other financial advisors by offering tax-forward investment strategies to your clients. When you ask the right questions, you'll be able to establish yourself as a valuable resource who can help them maximize their after-tax returns.

Take a few minutes to explore the Eaton Vance Tax Education Center at EatonVance.com/TaxEdCenter for more useful resources to help you meet a variety of tax-forward investing needs.
  

Tax-loss harvest transactions aren't beneficial in a retirement account because the losses generated in a tax-deferred account cannot be deducted.

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.

The views expressed in these posts are those of the authors and are current only through the date stated. These views are subject to change at any time based upon market or other conditions, and Eaton Vance disclaims any responsibility to update such views. These views may not be relied upon as investment advice and, because investment decisions for Eaton Vance are based on many factors, may not be relied upon as an indication of trading intent on behalf of any Eaton Vance fund. The discussion herein is general in nature and is provided for informational purposes only. There is no guarantee as to its accuracy or completeness. Past performance is no guarantee of future results.