Tax Management Strategies

Help your clients achieve their goals with strategies and techniques you can put to work for them all year

Your clients earned it.
Help them keep more of it.

Many Americans don’t realize how consequential taxes can be to their long term goals. Left unchecked, taxes can reduce returns. And it’s not just the wealthy. Every investor stands to lose money due to inefficient tax management. 

As their advisor, you can help clients achieve their goals with strategies and techniques you can put to work for your clients all year. 

It's not what you make, it's what you keep.

Taxes reduce performance over time*

It's not what you make, it's what you keep

Footnote:

Legal Note

* Hypothetical growth of $100,000. Parametric Portfolio Associates: Based on a hypothetical tax-free $100,000 portfolio invested 60% in stocks (based on the Russell 3000) and 40% bonds (based on the Barclays Aggregate) with (1) no liquidators. (2) interest income and dividends taxed annually at historical top marginal tax rates. (3) capital gains realized at 50% per year and taxed at the historical long-term capital gains tax rate. (4) portfolio is held for 38 years from (1979-2017). The intent is to portray a worst-case scenario. The portfolio would have grown from $100,000 to about $5.0 million. If the portfolio was taxed as indicated above, it would have lost 61% of its value, due to taxes paid and earnings lost on that money. Tax-managed investment strategies are designed to minimize capital gains distributions and maximize after-tax returns. Past performance is no guarantee of future results. There are risks involved with investing, including loss of principal. Index returns are for illustrative purposes only and do not represent actual fund performance. Index performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results.
As of 12/31/2017.

Make tax management a year-round undertaking 

Too often, financial advisors focus only on reducing taxes in November and December, at which point options are limited because they have lost the opportunity to employ tax management in the previous 10 months. Given the potential drain on wealth, we believe that tax management should be a cornerstone of every investor’s planning process. It calls for greater sensitivity to the tax consequences of portfolio implementation by employing effective tax management techniques and strategies throughout the year.

Implementing a tax-managed solution

So how do you structure investor portfolios to potentially reduce their tax liability and keep their earnings growing? We believe advisors should select the most appropriate vehicles in a properly diversified portfolio that align with clients’ long-term goals. Each option offers varying degrees of tax efficiency and sophistication to help investors keep more of what they earn.

These include:

We have built a range of innovative solutions over the past two decades to help investors keep more of what they’ve earned. Capitalizing on the robust computing power of smarter technology, our research and development efforts have produced more systematic and reliable ways to navigate an ever-changing investment and tax landscape. More importantly, our solutions work in context with investors’ long-term goals, risk tolerance and tax bracket at every level to implement strategies that seek to produce more effective outcomes.

Uncovering the Impact of the New Tax Law

Legal Note

Information and services provided by SEI Investments Management Corporation, a wholly owned subsidiary of SEI Investments Company.

There are risks involved with investing, including loss of principal. Diversification may not protect against market risk. There is no assurance the goals of the strategies discussed will be met.

SIMC does not represent in any manner that the tax consequences described as part of its tax-management techniques and strategies will be achieved or that any of SIMC’s tax-management techniques, or any of its products and/or services, will result in any particular tax consequence. The tax consequences of the tax management techniques, including those intended to harvest tax losses, and other strategies that SIMC may pursue are complex and uncertain and may be challenged by the IRS.

Neither SIMC nor its affiliates provide tax advice.Please note that (i) any discussion of U.S. tax matters contained in this communication cannot be used by you for the purpose of avoiding tax penalties; (ii) this communication was written to support the promotion or marketing of the matters addressed herein; and (iii) you should seek advice based on your particular circumstances from an independent tax advisor.

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