Tax-efficient portfolio transitions using direct indexing
How direct indexing can help limit the tax consequences of transitioning portfolio assets to a new account.
- There are many reasons investors may want to move their investments to a new account – but liquidating a portfolio and starting from scratch can trigger an unwanted tax bill.
- With a separately managed account, investors can transfer selected securities to the new account, selling only as much as necessary for proper diversification.
- Because each account is customized, investors can specify capital gains limits to minimize, delay, or avoid any net taxes.
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