You worked hard for your money, but over time, taxes will drag down your portfolio’s growth.  We work hard behind the scenes to minimize the impact taxes have on your investments utilizing industry-leading rebalancing software we developed.

Tax-efficient investing lightens the load

Paraglider soaring high above the Pacific Ocean in San Diego

Rowling & Associates developed one of the leading portfolio rebalancing software solutions in the country, Total Rebalance Expert. It was so successful that Morningstar® purchased it in 2015. This makes us the experts in tax-efficient investing. With this cutting-edge software, the R&A team can use strategies such as :

Location Optimization

The after-tax return of your portfolio can be increased with proper location optimization. This is the strategic positioning of investments in the three account types : taxable, tax-deferred, and tax-free. For example, after-tax returns can be increased by holding income generating investments such as bonds in an IRA and holding appreciating assets such as small cap stocks in a taxable account.

Tax-Loss Harvesting

Capital losses are good forever until you use them. They offset investment gains to lower, and sometimes eliminate, capital gains tax. We take advantage of market swings to lock in losses while keeping your money 100% invested.

Capital gain minimization

We sell high cost lots in order to limit the amount of capital gains you incur.

Capital gain distribution avoidance

This may sound counter-intuitive, but you want to avoid capital gains distributions from mutual funds. The share price goes down by the same amount that gets distributed. So all you are getting is a taxable capital gain. This can be avoided if you move to a similar mutual fund without a capital gain distribution.

We know you don’t like paying more taxes than necessary.  That is why we manage our client’s portfolios tax-efficiently. With a team of CPAs in-house, we use tax planning to continually monitor your tax situation for beneficial opportunities.  Our team recommends when to execute a Roth conversion, helps those who are charitably inclined maximize their donations, or works alongside your estate attorney to establish a tax mitigating estate plan.