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
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.
Keep in mind that investing involves risk. The value of your investment will fluctuate over time, and you may gain or lose money.
Optional investment management services provided for a fee through Fidelity Personal and Workplace Advisors LLC (FPWA), a registered investment adviser and a Fidelity Investments company. Discretionary portfolio management provided by its affiliate, Strategic Advisers LLC, a registered investment adviser. These services are provided for a fee.
Brokerage services provided by Fidelity Brokerage Services LLC (FBS), and custodial and related services provided by National Financial Services LLC (NFS), each a member NYSE and SIPC. FPWA, Strategic Advisers, FPTC, FBS, and NFS are Fidelity Investments companies.
Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917