Academics, economists and investment practitioners have published a virtual mountain of information on subjects such as building diversified portfolios, creating valuation models for markets and their components, attempting to understand and explain risk, possible anomalies to exploit, the implications of transaction costs and liquidity constraints, and the impact tax policies have on businesses, individuals and GDP. Financial advisors and consultants have spent a lifetime trying to find the best mutual funds and pension managers, the best annuities and insurance policies that will work for you and your family. We rely on our CPAs and Tax Preparers to keep us out of trouble with the State and Federal Tax Authorities, through their understanding and application of all those tax related rules. Yet the body of work dedicated towards improving the after tax performance of the individual's investment portfolio, is meager at best, and pales in comparison to the needs of individual investors.
The techniques used to maximize returns after tax for individual investors seems to have fallen on the shoulders of private portfolio managers serving the needs of the worlds wealthiest. This does not mean that the strategies and techniques are not available to us all; it's just that the financial products utilized by many of the practicing financial advisors are designed to be sold to the masses or to be used in a tax exempt account. In addition, delivering a customized approach to an individual investor is time consuming, expensive and works best with a portfolio of individual stocks and bonds.
In the coming weeks we will be sharing with you many of the strategies and techniques used in the management of our private clients to maximize after tax returns. Here are a few of the topics:
Tax Lot Management
How one day can increase returns by 20%
Tax Loss Harvesting
Tax Deferral works but it takes longer than you think!
Tax Free Interest
Converting ordinary income to capital gains.
Portfolio Tilts
Portfolio Rebalancing can be harmful
Anderson Griggs & Company, Inc., doing business as Anderson Griggs Portfolio Management is a registered investment adviser with the US Securities & Exchange Commission. Pursuant to laws and regulations Anderson Griggs also maintains notice filing with several individuals state regulators including North and South Carolina. Anderson Griggs only conducts business in states and locations where it is properly registered or meets state requirements for advisors. This commentary is for information purposes only and is not an offer of investment advice. We will only render advice after we deliver our Form ADV Part II to a client in an authorized jurisdiction and receive a properly executed investment Management Agreement. Any reference to performance is historical in nature and no assumption about future performance should be made based on the past performance of any Anderson Griggs Investment Objective, individual account, or index. The authors of publication are expressing general opinions and commentary. They are not attempting to provide legal, accounting, or specific advice to any individual concerning their personal situation. Anderson Griggs Portfolio Management's office is located at 113 E. Main St., Suite 310, Rock Hill, SC 29730. The local phone number is 803-324-5044 and nationally can be reached via its toll-free number 800-254-0874.