TCA's tax harvesting feature enables advisors to view and sort investments within an account by short-term or long-term losses or gains. By selectively selling specific investments, advisors can realize gains or losses in an account. Selling investments in a client's taxable portfolio that have dropped in value – i.e., "harvesting" those losses – will generate losses that can be used to offset gains the client has realized. Alternatively, advisors can help clients realize gains in their taxable portfolios to offset losses from other investments. Especially during volatile markets, tax harvesting can provide an effective and meaningful way to use losses to enhance after-tax portfolio performance.
Proceeds from the sales can remain in cash for 30 days or the advisor can elect to invest in an alternative security to maintain market exposure. TCA's trading platform automatically restricts the harvested security from being repurchased within 30 days in order to satisfy wash-sale rules and avoid disallowed losses.
Utilizing the tax harvesting feature, advisors can quickly run and analyze different scenarios to determine the tax harvesting strategy that works best for a specific client's account.
"With taxes being one of the largest drags on investment performance, advisors may not realize there is an effective solution available to help offset them," said Pace. "TCA's technology gives advisors and their clients greater control over how they can realize capital gains and losses in an account, enabling them to better align their tax strategy with their investment strategy."
For more information about TCA's tax harvesting feature, please visit http://www.trustamerica.com/.
About Trust Company of America
Since 1972, Trust Company of America (TCA) has been a champion of Registered Investment Advisors, dedicated to helping them realize their full potential. TCA is the only independent RIA custodian offering fully integrated real-time technology, consultative services and back office support built exclusively for RIAs. TCA partners with advisors to provide them the technology and support they need to manage their practices and clients' financial futures. Learn more at www.trustamerica.com.
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SOURCE Trust Company of America