QUIZ: Is tax-loss harvesting right for your clients? Tax-managed Investing

START QUIZ

A. 32% or higher

B. 22%–24%

C. 12% or lower

Which federal tax bracket does your client fall under?

A. 7% or higher

B. 6.99% or less

C. The state my client resides in has no income tax

What’s your client’s state income tax rate?

A. Hedge fund investments with high turnover and high net realized gains

B. A mix of taxable portfolios with modest turnover and retirement accounts

C. Only IRAs and a company retirement plan

What types of investments does your client hold?

A. Mostly individual stocks

B. Mostly ETFs and mutual funds

C. Little to no equities

What sort of equity exposure does your client have?

What are you waiting for?

Based on your responses, you should consider having a conversation about tax-loss harvesting with your client sooner rather than later. The right strategies could save the client a great deal in investment taxes and help you demonstrate even more value as a trusted advisor.

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Take our quiz:

Is tax-loss harvesting right for your clients?

A. The client is OK with high tracking error

B. The client wants to stay reasonably close to the benchmark

C. The client wants to perfectly mirror an index

For your client’s equity holdings, how important is it that they track the client’s chosen benchmark?

Your answers to just five questions can help determine whether your clients stand to benefit a lot, a little, or not at all from tax-loss harvesting.

YOUR RESULTS

Start a conversation with your client

YOUR RESULTS

Based on your responses, it’s worth raising tax-loss harvesting as a topic with your client. The right strategies could save the client a great deal in investment taxes and help you demonstrate even more value as a trusted advisor.

Your client may not gain much

YOUR RESULTS

Based on your responses, your client is unlikely to see much benefit from harvesting losses in their portfolio. But their situation may change in the future, so it’s worth finding out which tools may help them as their investments grow.

This information has been provided for discussion purposes only. It does not purport to address all the financial, tax, and legal considerations relevant to investors. No representation or warranty can be given with respect to the accuracy or completeness of the information contained herein. Parametric does not provide legal, tax, or accounting advice or services. Investors should consult with their own tax or legal advisor prior to entering into any transaction or strategy described herein. The views and strategies described may not be suitable for all investors.

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