As Registered Investment Advisors (RIAs) look to close out a tumultuous year, many are gearing up to start their year-end tax planning actions for clients. Many studies indicate that next to inflation, taxes remain the most significant drain on investment portfolios, as they can reduce returns by up to one percent per year.

Whether you’re looking to harvest security losses, ensure portfolios remain below realized gains targets, or track expected capital gain distributions from mutual funds, Envestnet | Tamarac’s suite of tax-planning tools can help you identify the next best action to take.

Tamarac Trading: Tax Management Tools

Here’s an overview of our most popular tax management options that RIAs turn to as part of their year-end planning:

  • Saved Searches to Find Tax Loss Opportunities. Tamarac Trading provides you with multiple “Saved Search” options to proactively find tax loss opportunities – either losses within a model, losses within an account, specific securities with losses, or any security with losses, as illustrated below:

  • Tax Loss Rebalance Types. After identifying portfolios with losses and setting a loss threshold for harvesting trades, Tamarac Trading can automate the harvesting process and either leave the proceeds in cash or buy underweight model positions to stay invested, including any substitute securities.

  • Tax Loss Directed Trades. Tamarac Trading also allows you to conduct a security-specific lot-level tax loss harvest and immediately reinvest the proceeds into your preferred substitute security.

  • Communication of Lot Level Trades to Custodians. Available for supported custodians, Tamarac Trading allows you to send specific lot trade instructions, providing more precise control over loss harvesting.

  • Wash Sale Tracking. With Tamarac Trading’s advanced wash sale tracking capabilities at individual and household levels, you can be confident that your year-end tax harvesting actions respect wash buy and sale restrictions.

  • Annual Capital Gains Budget. Setting a gains budget is a powerful way to monitor portfolios throughout the year and provide an early warning when a portfolio is approaching the agreed-upon budget. Tamarac Trading offers an easy way to view each portfolio’s % of “Tax Budget Used,” as illustrated below:

    For illustrative purposes only. Not based on actual client data.

Envestnet RIA Analytics Tool

Tracking mutual fund capital gains distributions can be time-consuming and challenging based on the need to manually gather data, research client holdings, and unify these sources of information to act across portfolios. Without your involvement in these trade management activities, your clients may face a tax burden.

With Envestnet’s RIA Analytics tool, you have a technology solution to aid in tracking capital gains distributions and help position them to mitigate tax burdens, reducing the manual and time-consuming research process. Here’s what our solution offers:

  • Targeted Projections. Our tool points out client positions and funds to watch based on indicators of potential gain distributions.

  • Focus on Fund-Reported Estimates. Our tool adds fund-reported estimates to narrow in on clients and accounts you should act on.

  • Clear Action Steps. Envestnet’s Insights Engine quickly identifies the clients, accounts, and products you should focus on to provide more value and deepen client relationships.

Learn More

You can learn more about the capital gains and tax tools in Envestnet’s RIA Analytics most recent webinar here. Our ecosystem of tools and tax management capabilities can help you provide more value to your clients and deliver financial wellness at scale. Visit or call us at 866-525-8811 to start a conversation.

The services and materials described herein are provided on an ‘as is’ and ‘as available’ basis, with all faults. The graphical illustrations herein do not represent client information or actual investments. Nothing contained in this presentation is intended to constitute legal, tax, accounting, securities, or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. Envestnet disclaims all warranties, express or implied, including, without limitation, warranties of merchantability or fitness for a particular purpose, title, non-infringement or compatibility. Envestnet makes no representation or warranties that access to and use of the internet while utilizing the services as described herein will be uninterrupted or error-free, or free of viruses, unauthorized code or other harmful components. Envestnet reserves the right to add to, change, or eliminate any of the services and/or service levels listed herein without prior notice to the advisor or the advisor’s home office.

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