Tax-Advantaged Solutions

Tax Efficiency and Asset Location

What if you could increase your growth potential simply by having your investment portfolio in a tax-advantaged location?  Research shows that the benefits of tax deferral can potentially lead to better performance over similar investments held in taxable accounts—without increasing risk.  By providing the ability to manage asset classes and strategies within a tax-deferred wrapper that are "tax-nasty" (those that generate ordinary income and/or short-term capital gains), we provide our clients the ability to optimize their portfolios for tax-efficiency.  The chart below shows the impact that taxes have on your growth.

This chart is a hypothetical illustration assuming (1) an initial investment of $100,000 was made in year 1, (2) no subsequent investments were made during the period, (3) an 8% average annual return and (4) a 33% tax bracket.  Return is not based on any specific security.


 

Tax-Loss Harvesting

Tax-loss harvesting is a way tax payers are able to potentially defer or reduce their tax liability.  It is the process of identifying investment losses in your taxable investment portfolio and selling those securities to recognize a loss.  These losses can be used to offset other gains and postpone tax liabilities.  The ability to defer these taxes can have a positive effect on growing your investment account.

Throughout the year DCP Asset Management monitors our clients' investment accounts to identify harvest opportunities and take advantage of those that make the most sense without the exposure to added risk.


 

*DCP Asset Management, LLC does not provide tax advice.  We encourage you to seek the advice of a tax-professional to see if these solutions are right for you.