Tax Overlay Service
Tax-efficient investing
For more information, go to investpmc.com. Envestnet | PMC
FOR ONE-ON-ONE USE WITH A CLIENT'S FINANCIAL ADVISOR ONLY.
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The Tax Overlay Service is designed to help reduce tax exposure with the
goal of improving after-tax returns.
It's Not What You Make, It's What You Keep That Matters
Taxes you pay on gains from investments, or capital gains taxes, could be your portfolio's largest expense. Particularly for some investors, the
taxes they pay on these gains could approach 50 percent or higher.
While you may only file taxes once a year, managing your capital gains tax liability should be continuous and ongoing.
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
$2,124,000
No tax drag
$1,762,000
1% tax drag
$1,459,000
2% tax drag
20-year hypothetical impact of
taxes, assumed annual return: 7.5%
YEARS
Ending wealth difference
in 20 years: $665,000
Initial investment:
$500,000
Hypothetical Growth Of $500,000 Over 20 Years At 7.5% Per Year
This is a hypothetical illustration and not meant to represent an actual investment strategy. A client's actual results will vary depending on their individual tax circumstances.
Tax drag is the reduction of potential investment returns due to taxes. The statement that tax could approach 50 percent or higher is based on maximum federal, state, and
municipal tax rates and surcharges in some jurisdictions. Taxes may be due at some point in the future and tax rates may be different when they are. Investing involves risk and
you may incur a profit or loss regardless of strategy selected.
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