Skip to main content
« Insights Do I need an investment policy statement?

Kevin Swanson Discusses Tax Management for Portfolios with U.S. News & World Report

Congress is currently negotiating possibly raising tax rates for individuals, corporations and capital gains. While the results of these negotiations remain unseen, it is important for investors to thoughtfully prepare their portfolios for these potential increases sooner rather than later. To help investors make their portfolios more tax-efficient, U.S. News & World Report turned to Potentia Wealth CEO, Private Wealth Advisor & LPL Registered Principal Kevin Swanson for insight.

While some investors may sell their assets at a loss to offset capital gains taxes, Swanson cautions against scheduled tax-loss harvesting. This practice can often lead to missed opportunities in portfolios, such as using losses to offset the sale of a business or another one-time large capital gain.

“Those are the times that you really want to analyze the losses in your portfolio,” he explains. “So I would say understand the ‘why’ for the losses and then be intentional about it.”

When it comes to withdrawals and tax implications, Swanson recommends a three-bucket approach by taking out assets using short-,intermediate- and long-term views. The short-term bucket should be in a very conservative account, while the intermediate- and long-term buckets should be in investments where taxes are not an immediate concern.

“In bucket two and bucket three, we’ve got those more aggressively (invested), and in bucket one, we’ve got the liquidity for roughly the next 12 months in place,” Swanson tells the publication.

Click here to read the entire U.S. News & World Report article.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

We’re here to help.

We have a team of family financial professionals with a range of life experiences to help you make progress toward your goals. Let’s connect.