In our recent webinar from November, we delved into the crucial topic of tax management, focusing on strategies to optimize after-tax returns. Led by Adam Grealish, Altruist’s Head of Investments, we explored collaborative approaches for advisors to help clients achieve better after-tax outcomes.
With a significant portion of Americans' lifetime earnings directed towards taxes, the webinar underscored how effective tax management strategies can substantially enhance after-tax investment returns.
Watch the replay here:
Key Takeaways from the Webinar
- Strategies for optimizing after-tax returns: Adam highlighted various approaches, including lot selection, tax-aware portfolio transitions, gains deferral, wash sale awareness, tax-loss harvesting, and asset location. These strategies can impact after-tax, take-home returns by minimizing tax liabilities. For example, when you’re selling a position, the selection of which lots can directly impact a client’s tax bill.
- Tax-loss harvesting and asset location: These two strategies can significantly influence after-tax returns. Adam presented compelling data showing the potential benefits of tax-loss harvesting over a 20-year period
- Altruist's tax management tools–Now and in the future: Adam showcased Altruist’s features like tax minimization algorithms for lot selection, tax-aware transitions with fund substitutes and security exclusions, and efficient investment options like tax-aware investment strategies and direct indexing. We also shared a live demonstration of Altruist’s platform, illustrating how advisors can use the tools to implement effective tax management strategies for their clients. This included TaxIQ, a suite of upcoming functionalities on Altruist’s platform designed to integrate tax sensitivity and automated tax loss harvesting into advisors’ portfolios.
Conclusion and future steps
The webinar wrapped up with an interactive Q&A session, where attendees had the opportunity to delve deeper into the nuances of tax management with Altruist. Adam offered a look into our immediate roadmap and reinforced our commitment to enhancing our tax management tools.
In a particularly insightful segment, Adam shared valuable feedback from a small group of advisors currently testing the Beta version of TaxIQ. This feedback is instrumental in shaping the upcoming enhancements as we approach the full rollout of TaxIQ.
As we gear up for the anticipated launch of TaxIQ in early 2024, we invite you to stay connected for the latest updates and insights. Should you have any queries or require further information, your Altruist representative is just a message away. We’re here to assist and guide you through these exciting advancements.