Tax-sensitive investment management may begin when we build your portfolio

Depending on the investments you fund with, we can potentially reduce the tax impact of getting to the appropriate investment mix

Transitioning your portfolio may require selling some investments

portfolio-transition

Selling all securities at once and reinvesting to reach the desired investment mix may potentially result in unnecessary tax consequences. For investors with eligible investments, we carefully consider which investments to keep and which to sell in order to reach the desired investment mix and reduce potential capital gains taxes.

Unless an investor is investing cash only, getting to the appropriate investment mix will probably involve selling some of the existing investments. If those investments have unrealized gains, this can result in capital gains taxes.


For investors funding with at least one of the over 20,000 eligible investments,2 we consider the cost basis of those investments, any loss carryforward opportunities, the investor's tax bracket, our outlook for those investments, and how they align with the new, desired investment mix. This process takes time, but it can potentially reduce the taxes an investor pays during the funding process and possibly in future years.