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Investors with taxable portfolios face unique challenges. Accountants and estate planning attorneys provide essential support, but clients rely on you to help them manage how taxes affect their portfolios. Over time, tax drag erodes portfolio returns, diminishes disposable income and impacts wealth longevity.

Tax drag refers to the taxes paid on capital gains, interest, and dividends on taxable accounts. You may be surprised to learn that investment taxes can have a larger effect on investment returns than fees or trading costs. Just take a look at the impact tax drag can have over a 20-year period in this hypothetical portfolio: even a tax drag of 1% can reduce the investors after tax return and impact their wealth plans.

Proactive year-round tax management can help improve your client's overall investment outcomes and elevate your practice. 

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