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We Do Much More Than Just Tax-Loss Harvesting

Tax-Loss Harvesting. Selling a basket of securities at a loss and simultaneously replacing it with a different basket of securities—helps clients reduce their tax risk while maintaining their market exposure. It’s an important tax-management tool. But it’s not the only one, and Foresight doesn’t stop there. Our tax-management solutions also include:

Tax-Efficient Transitions. Using proprietary tools to help investors balance the capital gains they’re willing to realize against an acceptable percentage of tracking error to the desired benchmark exposure.

Gain-Realization Deferral. Evaluating which securities to sell now and which to hold on to, with the expectation of future loss harvesting at the opportune time.

Holding-Period Management. Determining the client’s optimum time to hold a security, with an eye toward differing tax rates for short and long-term gains.

Yield Consideration. Advising on treatment of dividend income, since most dividends can qualify for a lower tax rate if the security is held longer than the minimum threshold.

Tax-Lot Consideration. Identifying ideal tax lots to trade—particularly if investors need to generate cash flow from their portfolio.

Wash-Sale Avoidance. Helping investors navigate the IRS’s rules on wash sales (repurchasing a security within 30 days of its sale) so they don’t miss out on loss opportunities.

Charitable Gifting. Working with investors to select highly appreciated stocks to gift to a tax-exempt charitable organization, donor-advised fund, or family members in lower tax brackets.

Asset Location. Making sure you hold the right securities in the right accounts to minimize taxation.

Tax Bracket Management. Utilizing thoughtful planning strategies in order to reduce what marginal tax bracket you will be exposed to.

 

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Foresight Financial Advisory LLC is an investment advisor registered and domiciled in Florida.

Disclosures

©2020 by Foresight Financial Advisory.