Tax loss harvesting provides us with an effective way to offset current or future investment gains and lower your tax liability. Incurring investment losses can help to optimize your portfolio’s overall performance. These losses can be used to offset realized capital gains in a tax year, reducing the amount you pay in taxes. However, it’s important to remember that the objective of tax efficient investing is not to minimize taxes but rather to maximize the post-tax total return of your portfolio. Our Managed Equity Separate Accounts the post-tax total return of your portfolio.

Our Managed Equity Separate Account seeks to match or exceed US equity market returns while selling under performing stocks to lock in losses. Individual stock ownership gives us more control over your capital gains—we’re able to choose which lots to sell in order to minimize taxes or engage in tax loss harvesting. Some stocks have unrealized gains while others have losses that are realized when sold. It’s a strategy that allows us to be both tax efficient and opportunistic.

Our Niche Growth Strategies provide another way to offset strong gains by selling positions at a loss. Although generating losses on taxable investments is not our objective, it provides an attractive way to reduce taxable income. If you sell what’s down and let unrealized gains accumulate without selling, you don’t owe taxes back until those investments are sold.

When it comes to bonds, not all are created equal—some pay tax-free interest while others lose almost half of their returns to taxes when interest is paid as ordinary income. We apply thoughtful analysis to the type of bonds included in your portfolio. Owning individual municipal bonds through a managed separate account, for instance, can not only generate tax-free income but also provide constant monitoring of each bond’s credit risk.

The reality is that there will be losses realized in your portfolio. By strategically managing assets in a tax-aware manner, our approach seeks to maximize return, manage liquidity and minimize the effects of taxes on your portfolio. Focusing on after-tax returns and harvesting tax loss opportunities concurrently can keep more dollars in your pocket.

Oxford Financial Group Annual Report - 2019