Issue link: https://resources.envestnet.com/i/1540659
1 © 2025 ENVESTNET, INC. ALL RIGHTS RESERVED. FOR ADVISOR AND HOME OFFICE USE ONLY. Our tax management tools in action Two different hypothetical tax transition case studies The client selected a $500k long term capital gains budget along with a $0 short-term gains budget, meaning none of the short-term gains were realized and deferred to long-term gains to be realized after the first year. The trade-off is an initial 1.8% deviation from the clients intended model. Without any tax management, the long term gains realized run up to over $1.6 million and the short term gains are $376k and being taxed at a higher rate… 01 03 04 But the client ends up paying a quarter of what their initial tax bill would have been. 02 05 … leaving the client with a tax bill of over $550,000 in the first year. No tax management $500,000 long-term capital gains budget Net-realized short-term gains $376,234 $0 Net-realized long-term gains $1,625,776 $500,000 Weighted account tracking error 0.02% 1.80% First-year tax bill due to transition $550,220 $119,000 Tax management fee $0 $11,649 Potential first-year tax savings N/A $419,571 See the Value of Envestnet Tax Overlay In this example, we have a client that an advisor just brought to their practice, and they want to transition out of their current equity positions into model positions. However, the new client is worried about the tax bill associated with transitioning their assets that currently have over $2.3 million in unrealized gains. Results are hypothetical and will vary from person to person. The success described in the scenario is not guaranteed and does not reflect typical outcomes. Any income or performance claims shown in this situation should not be viewed as a promise of similar results. This hypothetical case study is for informational purposes only, and past performance is not necessarily indicative of future success. █████████████████ Ì20000EHZQ"Î