Managing for After-Tax Returns

Unlike institutional investors, most individual investors have to consider the effect of taxes on their investment returns.  At TIA, tax management is an essential component of investment management.  Tax management begins with reviewing the cost basis of the client’s existing portfolio, establishing a portfolio plan that seeks to reduce the realization of taxable gains, and continues as an everyday part of portfolio management.

TIA views your entire portfolio as a single entity, spanning your regular accounts, trusts, IRA rollovers, and other accounts. By design, TIA locates different types of assets in different accounts according to their tax characteristics. We position portfolios to utilize the tax advantages that qualified dividends and many bonds enjoy. And we seek to utilize an advantageous mix of capital losses and gains to minimize the taxes that you would ordinarily have to pay due to ordinary income and/or capital gains. TIA’s tax tactics are designed to complement the tax strategy that you and your tax advisors have created to benefit you.

Tax considerations also come into play when TIA restructures a portfolio. The implementation plan includes a careful examination of your existing portfolio, including its unrealized gains and losses. We may sell a position that has unrealized losses and retain one with unrealized gains to minimize taxes while at the same time establishing your new portfolio. Unlike with many larger, more well-known traditional investment managers, you and your portfolio are not force fit into the highly-touted “ideal” portfolio that their remote expert has designed for the ideal client. TIA’s structured, quantitative approach to portfolio management creates far more flexibility and applies far more expertise to these individual choices than does a typical traditional program of separately managed accounts.