At Hightower Bethesda, each client’s portfolio is customized from a tax perspective. When someone becomes a new client, we do not just sell all their holdings, recognizing the tax consequences of these actions could be disastrous. We complete a thorough and comprehensive analysis of their existing positions and come up with a mutually agreeable strategy for implementation and long-term diversification.
We value and recognize the importance of both optimization of asset location as well as the underlying tax characteristics of the investment. We couple that with the individual’s specific tax rates and put together a tax strategy aimed at optimizing long-term, after-tax adjusted returns.
We proactively recognize tax loss harvesting opportunities and provide tax alpha for our clients whenever possible.
There are always various other tax planning opportunities that arise in the world of investments. Often due to the enactment of various legislation there are new and expanded tax planning opportunities. We have used opportunity zone funds for clients, assisted with understanding PPP loans for small business owners and provide retirement planning tax strategies on an ongoing basis as a few examples. We work very closely with our clients’ CPAs and can make recommendations to CPAs, if requested, but in all regards, we work hand in hand with CPAs to optimize after tax returns for our clients.