A transformative approach to tax savings
Imagine what clients could do with the taxes they save
Even small tax bites can have a big impact over time, as shown in this chart.
- The cost of a college education: Losing 1% of a portfolio’s value to taxes each year costs $297,000
- The cost of a new home: Losing 2% of a portfolio’s value to taxes each year costs $816,000
It’s not surprising that tax management is ranked as the #1 financial need for households with $5 million or more in investable assets.1
Potential impact of taxes
10-year growth of $1 million invested in U.S. large cap equities, with and without taxes²
Strategies to easily manage taxes
Complement or replace existing holdings with tax-efficient ETFs
- Access our best equity and fixed income managers through tax-efficient ETFs, that typically pay little or no capital gains distributions.
- When selling investments with substantial capital gains, consider our diverse lineup of active ETFs to help maintain comparable market exposure.
Portfolio analytics tools for helping optimize tax outcomes
- Stress test portfolios against tax driven developments that may impact markets in the digital Portfolio Analysis tool.
- Review estimated capital gain distributions for more than 5,000 mutual funds and ETFs at year end in the Heatmap Analysis tool.
Our Tax-Smart Platform offers a range of investment solutions that effortlessly provide continual tax analysis and finds tax-loss harvesting opportunities as soon as they arise.
Featured insights
¹Cerulli Associates, The Case for Direct Indexing: Differentiation in a Competitive Marketplace, December 2022.
2J.P. Morgan Asset Management, Factset, as of December 2024; US large cap equities represented by the S&P 500 index. For illustrative purposes only. You cannot invest directly in an index.