Seattle Tax Saving Strategies

Reliable Tax Saving Strategies For Well-Established Investors in Seattle

Financial Planning 101: Tax Saving Strategies

If you’re a well-established investor with $1 million or more of investable assets, chances are you pay a significant amount of taxes on your investments. The reality is that the more wealth you have and the more you invest, the more you’ll have to pay in taxes. However, there are specific strategies you can use to help lower your capital gains taxes and improve your after-tax returns. The results? Not paying more taxes than necessary, thus maximizing your investment portfolio returns.

Seattle Tax Reduction Service: What to Expect

Our tax savings strategies here at Olympic Wealth Management can help you lower your capital gains taxes and improve your after-tax returns, all without any additional risk to your investment portfolio.

Here are the three tax-saving strategies we use to maximize the strength of your overall financial plan:

1. Tax Loss Harvesting

The first tax-saving strategy we utilize is tax loss harvesting. This involves selling underperforming investments that have decreased in value to offset capital gains realized on other investments in your portfolio. Tax harvesting is incredibly advantageous for our clients with large taxable portfolios and higher tax exposure.

2. Gain/Loss Matching

Gain/loss matching is where we balance the gains and losses in your investment portfolio in order to help you achieve a more stable financial position. We align the timing of gains and losses to offset each other and mitigate your overall investment risk.

3. Deferral of Short-Term Gains

Deferral of short-term gains refers to the process of deferring payments on the sale of your short term assets. This important strategy allows our investors to reduce their tax payments in the short term and use the savings toward other investments.

These tax saving strategies are beneficial for high net worth investors with large unrealized capital gains in a taxable (non-retirement) account needing to:

  • Diversify a large/concentrated holding, or
  • Switch to a new portfolio strategy but control your taxes through the process

Our tax saving strategies are expertly coordinated across multiple components in managed portfolios using highly-sophisticated technology from Envestnet.

Why Tax-Efficient Investing?

Reduces Your Taxes

Tax-saving strategies and tax-efficient investing work in tandem to reduce your taxes payable, thus keeping more money in your pocket where it belongs.

Increase Your Wealth

Over time, even slight tax decreases can positively impact your investment portfolio and overall wealth. While it may not seem like a lot today, you will thank yourself in the future!

Plan For The Future

Whether you want a little bit extra in the bank for retirement or more money to leave behind in your grandchildren's trust, tax-efficient investing can help you get there.

Frequently Asked Questions about Tax Planning

Tax planning is the process of strategically examining your income, expenditures, and investments, in order to decrease the amount of money you are liable to pay in taxes. Essentially, it is an optimization strategy to ensure you don’t pay any more taxes than needed, allowing you to have more money to save or invest in the future.

Investors can participate in several tax savings strategies to limit taxes on capital gains. These strategies include tax-advantaged retirement accounts, tax-loss harvesting, gain/loss matching, and long-term strategic investing.

Tax harvesting is the practice of selling unsuccessful investments at a loss to counterbalance taxable capital gains on other investments in the future. This technique helps investors with large taxable portfolios achieve better returns over time.

Olympic Wealth Management offers tax saving services for affluent investors across the Seattle, Bothell, Redmond, Woodinville, and Kirkland areas. We can help you implement tax savings strategies that will better your financial future.

Ready to Start Lowering Taxes on Your Investments?

Contact Your Seattle Financial Advisor Today!