Capture a Piece of $600 Billion by Maximizing Tax Alpha for Clients

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With trillions of dollars changing hands in the blink of an eye, the world of finance is dynamic, making staying ahead of the curve (and competitors) paramount. In fact, Deloitte estimates that by 2030, Americans will have amassed a staggering $64 trillion in investable assets.

With such colossal wealth in play, the demand for financial advisors equipped with the expertise to navigate the complex terrain of tax planning and wealth management optimization strategies has never been more vital.

In the quest to secure a competitive edge in the advisory landscape, Russell Investments' “2022 Value of an Advisor” study unveiled a pivotal insight: Advisors who adeptly assist clients in implementing tax-intelligent investing strategies can effectively differentiate their practice. This finding underscores the ever-growing significance of tax optimization in the wealth management realm.

Russell Investments further elaborates on the consequences of neglecting tax considerations. Investors in non-tax-managed U.S. equity products, encompassing active, passive, and ETFs, found themselves relinquishing an average of 2.14 percent of their returns to the clutches of taxation.

In stark contrast, those who entrusted their investments to tax-managed funds witnessed a significantly lower tax burden, forfeiting just 0.92 percent of their returns. This translates into an impressive 1.20 percent gap in annual savings.

In monetary terms, advisors are presented with an astounding $600 billion opportunity to demonstrate their prowess by capturing tax alpha for their clients.