FAC’s ability to take clients directly to their own individual securities within our professionally managed models makes it possible for us to implement unique tax-saving strategies on non-qualified, or taxable, accounts.
Because the securities within our Models are held and managed directly, independent of a fund, FAC management has the flexibility to sell losses* within the Model to offset realized gains at the end of each quarter — without having to sell the entire Model.
This unique tax management ability supports our mission to provide true fiduciary service to our advisors and their clients. In addition, it empowers our advisors and their clients to pursue efficiencies and results beyond the typical fund or index holding.
We invite all advisors and clients to contact an FAC representative today to learn more about this and our other innovative, direct and transparent services.
*This unique and valuable direct holdings feature not only minimizes taxable gains but also may generate extra taxable losses, which investors could use to offset gains in other assets, as well as up to $3000 of ordinary income each year. Losses above that amount can be carried forward indefinitely for use in future years. In order to avoid "wash sales," the stocks sold may be replaced with a non-identical stock or group of stocks to maintain the portfolio’s desired risk and return characteristics.
There is no guarantee that this tax management feature will provide after-tax returns greater than those which would be earned if intentional tax management were not applied. FAC is not intentionally providing tax advice through these methodologies. Please consult with your tax advisor regarding how FAC’s Tax Managed Models might affect your personal situation.