What we do
Keeping more of what you make
If your tax burden is minimized, where possible, there will be more money left over to add to your wealth and enjoy more of the finer things in life. Even though we all understand this, not everyone has the proper measures in place to make a real difference in practice.
The reasons why people do not take full advantage of tax breaks are wide and varied but can be summarized by appreciating that it takes time, energy, and expertise to make the most of your investments.
At Tan Allen Piguet Asset Management, we highlight several areas for consideration when attempting to reduce taxes:
Evidence-based strategy
An increasing amount of independent research concludes that traditional investment management disappoints when taking into account after-tax returns. Utilizing the information gleaned from this exhaustive research leads us to steer away from high turnover and tax-inefficient investment strategies, and instead, veer more towards a disciplined portfolio strategy geared to be more tax-efficient.
Tax-efficient investing
Portfolios with fewer investment transactions tend to be more tax efficient. On average, Tan Allen Piguet Asset Management’s recommended investments are more tax-efficient than most strategies, and when capital gains are incurred, a higher percentage are long-term, rather than short-term in nature. This distinction is important because short-term capital gains are usually taxed at ordinary income rates rather than the lower rates that apply over longer-terms.
Tax loss harvesting
Tan Allen Piguet Asset Management may choose to sell a holding showing a loss from time to time and not only at year-end. These “booked” losses can be used as a counter measure to mitigate other realized gains, either within the portfolio or on non-portfolio assets, such as property.
Asset location optimization
In simple terms, asset location optimization is the method of distributing assets from a client’s portfolio across different account types such as taxable, tax-free, and tax-deferred accounts. Each of these account types is selected for a specific type of portfolio investment, and Tan Allen Piguet Asset Management can construct an asset location strategy to suit.
Important note
The primary function of Tan Allen Piguet Asset Management is to build wealth. Taking tax considerations into account may conflict with the selected investment strategy and not be in the best interests of the client. Also, tax rules and rates vary considerably from one country to the next. The examples detailed above may not be available to use in your country.
We strongly recommend that you seek tax advice from a professionally qualified source in the location that you are resident, or pay taxes. Tan Allen Piguet Asset Management cannot and will not be held responsible for the full use of tax allowance that may be available in your country.
