When and how you make withdrawals can impact your tax burden

There are tax-sensitive strategies we can apply to withdrawals

When managing withdrawals, techniques can be used to help potentially reduce an investor's tax obligation


When clients need to make withdrawals, we consider the tax impact of selling specific investments and seek to maintain the appropriate investment mix in the portfolio. This can be done using a cash flow reserve to accommodate ongoing withdrawal needs, or on a one-time basis for large withdrawals.

When it comes time to withdraw money from a managed account, if not done carefully, an investor may end up paying more in taxes than necessary, or shifting their investment mix out of alignment with their long-term goals.

If regular withdrawals are necessary in order to meet ongoing income needs, we can maintain a cash reserve, if requested, at no additional cost. This reserve will be created so that the investor's investment mix will remain aligned with their strategy. If the cash reserve runs low, we’ll sell investments in the investor's portfolio to replenish it, remaining mindful of the account owner's overall tax situation.

In the event a large withdrawal is needed, we can use a similar approach to help reduce the potential tax impact, while seeking to maintain an appropriate investment mix.