The new year presents an opportunity to evaluate your financial strategy with fresh eyes. As high-net-worth individuals and families, optimizing your investments for tax efficiency is essential for preserving and growing your wealth over the long term.
At Exencial Wealth Advisors, tax planning is integral to our holistic approach to wealth management. With 2024 well underway, take some time to explore key fundamentals, strategies, and planning opportunities designed to minimize your tax liability and enhance overall returns.
Understanding Tax-Efficient Investing: Strategically managing investments across taxable, tax-deferred, and tax-exempt accounts can lead to better after-tax returns. Our advisors guide clients through these complex decisions, ensuring portfolios are optimized for performance and tax efficiency.
Strategic Asset Allocation Across Accounts: Tax planning isn’t just about selecting individual investments. Effective asset allocation considers which types of assets to hold in various account types. Our team works with clients to develop an asset allocation tailored to financial goals and risk tolerance while also positioning assets strategically to minimize taxes.
The Power of Tax Loss Harvesting: Once the asset allocation is in place, there are ongoing opportunities to optimize performance and tax efficiency. Tax loss harvesting involves selectively realizing losses to offset capital gains. Executed consistently over time, tax loss harvesting can lead to substantially higher after-tax returns.
Incorporating Tax Planning into Estate Strategies: For high-net-worth families, taxes also come into play when developing estate plans. Implementing tax-efficient wealth transfer strategies can reduce estate tax liability. Proper planning also enables you to leave a lasting legacy for your family or philanthropic causes.
Taxes are complex but also present significant planning opportunities. Our team of seasoned advisors regularly monitors tax code updates to identify savings for our clients through both investment management and estate planning.
We encourage you to reach out to your financial and tax advisors to determine the most appropriate strategy for your individual situation, allowing us to craft a personalized plan designed to preserve and grow your family's legacy.
Exencial Wealth Advisors is an SEC registered investment adviser. Any references to the terms “registered investment adviser” or “registered,” do not imply that Exencial or any person associated with Exencial has achieved a certain level of skill or training.