In recent years, the industry has seen an increased demand for tax-aware investment strategies, including using tax-loss harvesting as a means to pursuing improved financial outcomes. But often advisors struggle with how to quantify and explain that value to their clients.
As part of our continuing work toward becoming the industry standard for automated tax-loss harvesting and custom models, 55ip has created a new resource for advisors, called the 55ip Tax Harvest Indicator.
Published quarterly, the Tax Harvest Indicator measures the percentage of estimated tax savings generated by our tax-smart technology. The aggregate tax savings are based on all eligible ETF and mutual funds model portfolio accounts powered by 55ip. In total, the model strategies across providers, objectives, and risk tolerances are reviewed by our technology to capture tax benefits. Commentary for each quarter’s score is included and how it was impacted by market returns, security returns, and realized harvesting activity in each account.