Tax Aware Investing

Do you find yourself saddled each year with a capital gains tax over which you have no control? It may be time to rethink your investment choices and explore the benefits of an individually managed account. An individually managed account can focus to optimize after-tax return with a tax-sensitive strategy.

AN INDIVIDUALLY MANAGED ACCOUNT OFFERS:

  • More control over the realizing of gains and losses
  • Direct ownership of securities
  • The opportunity to construct a customized, tax-sensitive portfolio
  • Fee discounts for larger investors
  • Cost basis of individual securities you own

High-net-worth investors can significantly reduce their tax burden by holding securities for more than 12 months, qualifying for the 15% long-term capital gains tax rate.

Mutual fund investors cannot control the timing of buys and sells in the fund, and tax regulations that govern mutual fund investing require that all gains realized in a mutual fund must be distributed to fund shareholders every year.

Therefore, if the fund manager realized gains in your mutual fund as part of the fund investment strategy, you may have to pay ordinary income taxes on your pro rata share of those gains, whether you participated in the gain or not, and whether the tax liability is in synch with your individual investment strategy or not.

IS AN INDIVIDUALLY MANAGED ACCOUNT RIGHT FOR YOU?

Are you a high-net-worth investor?

Individually managed accounts are available at a $100,000 investment minimum.

Do you have large holdings of low cost basis stock?

In an individually managed account, we can orchestrate the liquidation of highly appreciated assets to optimize the tax consequences of the capital gain.

Have your holdings outgrown the kind of service mutual funds provide?

In an individually managed account, you are the sole owner of a portfolio geared to the investment strategy we customize for you, and regular, detailed performance reporting keeps you informed about your portfolio`s progress toward your investment goals.

Do you want to control when gains or losses are realized?

Individually managed accounts give you control over when gains and losses are realized without forcing you to sacrifice the advantages of professional asset management and investment diversification.

YOU HAVE CONTROL

With an individually managed account, we work with you to construct the most tax-efficient portfolio available today. The decision-making process takes into account your risk tolerance, tax bracket, long-term investment goals, time horizon, and other important criteria. Unlike a mutual fund, an individually managed account enables you to maintain control over the buy/sell decisions regarding your taxable assets. Every portfolio is designed to meet your specific investment criteria as an investor, and to optimize your after-tax return. You could save nearly 50% of the taxes you pay on investment returns by moving your assets from mutual funds into an individually managed account.

GLOBAL RESOURCES, INDIVIDUAL FOCUS

KG’s research suppliers include investment research professionals with PhD degrees, MBA degrees and prestigious Chartered Financial Analyst (CFA) designations. Our research specializes in tax-efficient investing and tax-sensitive portfolios for high-net-worth individuals. At KG, we combine our expertise as financial advisors and the results of our study of your personal financial objectives with the information provided by a team of investment research professionals to structure a highly customized investment strategy. We access global investment resources to work for your individual goals.