ability to harvest capital losses against capital gains, donate appreciated shares to
charity, implement a step-up in basis, and
take foreign tax credits. While these opportunities have more or less importance
depending on your goals and circumstances, they become unavailable for stocks
held in tax-sheltered accounts.
In short, arriving at – and maintaining –
the best asset location formula for you and
your unique circumstances is something of
an art as well as a science. That’s one reason why it’s important to have a well-coordinated adviser team, to ensure that you’re
making best use of all of the wealth-building opportunities available to you, including but not limited to asset location.
Organized Alliances: Do Your
Advisers Get Along?
It’s important to manage your investments
tax efficiently. But what about when it
comes time to transfer your wealth –
bequeathing it to heirs and making meaningful donations? And what about your tax
filings themselves? Is your accountant
aware of what your investment manager is
up to, and are both of them informed of
pertinent details related to your estate
planning?
In short, are key members of your financial
team – your estate planning attorney,
investment adviser, tax professional, insurance providers and others – acting in isolation or in coordinated concert with one
another? Even if each is seeking to best
manage tax-related events within his or her
specialized area of expertise, if there is little
or no coordination among their activities,
unnecessary (taxable) gaps or overlaps
may occur when key communications
break down.
As we’ve covered in this series, tax-wise
investing includes:
n Establishing an effective Investment
Policy Statement
n
Making best use of available taxsheltered or tax-free investment accounts
n Investing tax efficiently yourself
n Selecting fund managers who invest tax
efficiently on your behalf
n Appropriately locating your more and
less tax-efficient holdings among your taxable and tax-favored accounts
n Ensuring that all of the members of
your financial team are acting in taxefficient concert with one another across
the spectrum of your financial activities
All this and more is why the final piece in
the puzzle is to engage a wealth manager
like Bland Garvey to organize the many
moving parts and players involved, keep an
eye on it all over time, and help you and
your specialized team members make
adjustments when appropriate. The savings achieved can more than offset your
investment in ongoing oversight of your
tax-wise wealth. That’s a good idea, any
time of the year.
Bland Garvey, P.C. is located at 2600 N. Central
Expressway in Richardson, Texas. For information,
please visit www.blandgarvey.com, send email to:
[email protected] or call (972) 231-2503.
John Garvey, Jr., CPA/PFS
Chief Executive Officer
Joining Bland Garvey, PC in 1991, John is the firm’s Managing Partner and shareholder in charge of tax and consulting service engagement. As investment advisor he also manages our affiliated Bland
Garvey Wealth Advisors, LLC. He has been instrumental within our
affiliated firms’ mission to provide integrated accounting and wealth
management partnerships for each of our clients.
His decades-long background in general accounting and his hands-on
expertise in various facets of dental practice and business planning
have provided an excellent