Tax-Smart Personalized Indexing
Save money on taxes today, and tomorrow
The Power of Tax-Smart, Personalized Indexing
The biggest enemy of our money is taxes, and it’s often the biggest financial fear of our clients. That is why Edgcomb Advisors utilizes tax-smart, personalized indexing - or “Direct Indexing” - as a component module that can be plugged into a financial strategy as a tax-loss harvesting engine. It’s oriented on growth, designed for you, and the key aim is to reduce or eliminate capital gains taxes.
Single stocks provided growth, a way in increase your worth by buying ownership in a company. Mutual Funds provided diversification, getting exposed to more companies in more places. Exchange Traded Funds (ETFs) ushered in indexing, lower costs, and trading funds on the exchanges.
But, they all leave something on the table...
Tax-smart, personalized indexing brings active tax management into the forefront. The next evolution in investing aims to reduce, or eliminate, capital gains taxes. Taxable investing will never be the same.
The Next Evolution of Investing is Here
“Direct indexing harvests volatility to harvest losses.
It’s the next evolution in investing that allows us to benefit from the ups and downs in the market. We don’t have to white-knuckle it anymore.”
Single
Stocks
ETFs
Mutual
Funds
Single stocks provided growth, a way in increase your worth by buying ownership in a company. Mutual Funds provided diversification, getting exposed to more companies in more places. Exchange Traded Funds (ETFs) ushered in indexing, lower costs, and trading funds on the exchanges.
But, they all leave something on the table...
Tax-smart, personalized indexing brings active tax management into the forefront. The next evolution in investing aims to reduce, or eliminate, capital gains taxes. Taxable investing will never be the same.
The Next Evolution of Investing is Here
Direct
Indexing
Single
Stocks
Mutual
Funds
ETFs
Direct
Indexing
“Direct indexing harvests volatility to harvest losses.
It’s the next evolution in investing that allows us to benefit from the ups and downs in the market. We don’t have to white-knuckle it anymore.”
Is Tax-Smart Personalized Indexing for You?
Tax-managed Equity Indexing
Anyone who has high capital gains tax rates can benefit from tax-smart, personalized indexing - high-income families and business owners.
We can plug in a direct indexing strategy to your financial plan to generate losses to increase your after-tax return.
It’s not all about what you make, but what you can keep that matters.
Unwinding Concentrated Positions
Gains are a good thing. Yet, retirees and long-term investors inevitably have to deal with unwinding the concentrated positions of their growth and accumulation years.
Tax-smart, personalized indexing can become the engine in your portfolio that consistently, and automatically, generates tax-losses that can be used to deal with highly appreciated assets.
Offsetting Future Gains Events
Our business owners use direct indexing strategies to create a tax-loss war chest for the eventual realization event.
Whether it is selling properties, your business, or your business selling property, tax-smart personalized indexing generates losses that do not expire.
Our business owners experience Advisor-guided tax planning through technology.
Develop a capital loss carry forward for liquidation events
Determine how aggressively you want to unwind embedded gains through a “gains budget”.
Transition accounts systematically
Personalize the index to your investment preferences
Tax Planning & Personalization
How Direct Indexing Works
Select the Index
Our planning-driven process begins with our specifically designed discovery conversation. When direct indexing is right for you, we select a provider and the appropriate index. We personalize it to you, and apply it like an “app”.
Just like an Exchange Traded Fund (ETF), the intent is to closely track the performance of a market index - like the S&P 500.
Unwrap the Index
To approximate the return of an index we don’t need to own every position. The power of tax-smart, personalized indexing is in owning a sample subset of individual securities while maintaining the overall sector weights.
Owning a proportional amount of individual securities in a Separately Managed Account (SMA) allows for active tax management.
Tax-Loss Harvesting
Tax-smart, personalized indexing harvests volatility to harvest tax losses with the intent of increasing your after-tax return and building a tax loss bucket to offset future capital gains.
The major market indices - the source of growth for many portfolios - experience ups and downs. So does your mutual funds or ETFs.
Why not benefit from the volatility we experience?