Investment Management

Tax Efficient Investing

Tax management is an intricate process, with each investor presenting a unique set of circumstances involving many variables. At Cross Creek Financial, we recognize that taxes do adversely impact your overall returns. We explicitly recognize that managing taxes is an important component to taxable accounts such as personal assets, trusts and partnerships. We understand that how your tax-deferred assets are allocated is just as important for long-term wealth. Thus, we tailor investment decisions to tax status. However, research has shown that the investment decisions can hinge on some key variables:

The investor's age
Tax code and how long will it remain in force
Tax impact of any asset location change
How much risk an investor can endure given portfolio return requirements, this is critical when investing in a tax efficiency manner with certain managers or asset classes

Because we focus on investing versus trading, our capital gains are almost always long-term, which are entitled to favorable federal tax treatment.

While our focus is on after-tax returns, incorporating sound tax management into the investment process helps minimize, not eliminate taxes. We focus to rebalance the portfolio in accordance to each client's investment policy statement and portfolio objectives, a rules-based approach to minimize portfolio risk and potential taxes.