During a downed market, it can be hard to find financial opportunities. Tax-loss harvesting and asset location are two ways your PR Wealth advisor helps maximize your wealth.
Tax-loss harvesting allows us to offset capital gains with losses. This strategy helps lower your tax bill and better your portfolio. This is done by first selling an investment that may be losing you money, which can then be used to minimize your taxable gains. Later, that money can be reinvested. In summation, selling certain declining investments can allow you to use that loss to offset capital gains which reduces tax liability. On top of that, if your losses are more than your gains, you can use the remaining losses to offset your general taxable income.
PR Wealth advisors are always looking out for opportunities within your portfolio. This includes looking out for situations where tax-loss harvesting will be beneficial. This can save you the stress and worry of having to keep this option in consideration and give you the confidence that your advisor is looking out for the best options for your portfolio.
We aim to maximize our client's after-tax wealth, and tax efficiency plays a role in this. There are many parts of being tax efficient, including asset location. Asset location entails dividing up the pieces of your assets into different types of accounts – taxable, tax-deferred or Roth. Each of these accounts are taxed differently. Considering this, our advisors decide on the asset allocations based on each parts’ expected return and the tax treatment of its gains. By doing this, you can get the same amount in returns while paying less in taxes. Through optimizing asset location, our advisors help enhance your portfolio over time.
Our PR Wealth advisors are here to help you achieve tax efficiency and control your investments for the best results. By working with us, you can rest easy, knowing our advisors are optimizing your investments and looking out for all opportunities to help increase your wealth.
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