Over time, taxes can erode portfolio returns, diminish disposable income and impact wealth longevity. Proactive, ongoing and year-round tax management can help your clients to compound and grow their wealth.
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Key Takeaway
You can help round out the information clients receive from their accountant and estate attorney by providing perspective on how taxes affect their portfolio.
Explore How Taxes Can Impact Future Wealth
Select each hypothetical portfolio to learn how tax drag can impact wealth over time.
For illustrative purposes only. The above hypothetical analysis compares a base portfolio of $1M that assumes a 7.5% annual return with two other portfolios with reduced annual returns of 6.5% and 5.5% over a 20-year period. The portfolios with reduced returns are meant to demonstrate the long-term effects of even a small amount of compounded annual return loss due to tax-inefficiency or "Tax Drag". Actual results may be influenced by more complex factors.
Start the Wealth Transfer Conversation
Start the Wealth Transfer Conversation
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Beyond Taxes: Reasons for Estate Planning
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Understanding the Estate Tax
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Know the Core Estate Planning Documents
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Tax Planning for Life Events
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Understanding Itemized Deductions
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3 Questions for Tax-Smart Planning
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Tax Treatment of Different Investment Vehicles
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Understanding Tax-Equivalent Yield
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The Importance of Asset Location
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Why Taxes Matter
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Novel Ways to Talk About Taxes
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How Taxes Impact Wealth
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4 Approaches To Help Reduce Taxes
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Tax Advantages of Different Accounts
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Tax Advantages of Donor-Advised Funds
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Ways to Give
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Charitable Donations: Why Choose Stock Over Cash?
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Three Scenarios Where Planned Giving Can Make a Difference
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Benefits of Donating Concentrated Stock
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Charitable Giving: 3 Questions to Ask
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When to Consider Diversifying Concentrated Shares
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Three Types of Incentive Compensation That Require Tax Planning
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Reducing Taxes on Incentive Compensation
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Restricted Stock Units (RSUs): Incentive Compensation
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Nonqualified Stock Options (NQSOs): Incentive Compensation
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Incentive Stock Options (ISOs): Incentive Compensation
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