The Impact of Ignoring Tax Management
Did you know that taxes are one of the biggest drags on your overall investment performance? 4Rivers understands the importance of managing for taxes so you can keep more of what you earn. Here are five ways the team looks to make a tax impact on your investment portfolios.
Tax-Smart Portfolio Design
Portfolio design often starts with tax location. Some investments come with income that is taxed at your ordinary tax rate and belong in tax-deferred accounts. Other investments can be federally income tax free. A 4Rivers advisor can help you match the right type of investment to corresponding tax treatment of your accounts.
Tax Smart Withdrawals
Which accounts should you take a distribution from and when? 4Rivers can help you optimize your withdrawals to avoid gains or increasing your taxable income.
Holding Period Awareness
When you sell an asset for a gain, the profit can be taxed at different rates. If you hold the investment for more than a year (12 mos.) you pay long term capital gains. If you hold it for less than a year, your gain is exposed to ordinary income taxes.
Tax Loss Harvesting
Did you know that investment losses can be beneficial? When you sell assets at a lower price than you paid for them, you can use the loss to offset a capital gain elsewhere in the portfolio. This can help lower your tax bill.
Custom Portfolio Transition
You may hold an investment with a low-cost basis that has grown significantly over time. Rather than sell your holding to transition into a different portfolio, 4Rivers takes a long-term view. We can create a strategy that incorporates your investment and spreads out the gains over time.
Elevated Wealth Management
Concerned about the impact of taxes on your financial goals?