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Taxes Matter: Capital Gains Tax

“My Investment Account Lost Money and I still have to pay capital gains tax?”

Is this a frequent question you receive from High Net Worth Clients?  Your clients just need a firm that emphasizes tax efficiency.  Managing Taxes is not difficult to do.

Here’s why….

Separate Managed Accounts

Windward HNW Client portfolios have Separately Managed Accounts.  Throughout the year, active managers should be capturing any individual stock or bond losses to offset realized capital gains to shareholders. Windward taxable accounts hold managers who, by design, have low turnover and thus aren’t likely to spring capital gain surprises.  At Windward, the Portfolio Manager talks directly to Separate Account Managers and Mutual Fund Managers and has a pulse on the turnover in these accounts.

Asset Location

Windward HNW client portfolios are designed so that the higher turnover funds are held in tax deferred retirement accounts to avoid short term capital gains.

Planning and Tax Efficiencies

Windward spends significant time planning for client distributions.  We review all the client assets and available funds and advise the client on the most tax efficient place to sell holdings to raise cash.  We simply do not make redemptions based on an asset allocation balancing strategy.

Making Gifts

Clients are encouraged to make gifts of highly appreciated stocks or with distributions from their IRA Required Minimum Distribution.


Windward HNW client base allows us to communicate with our clients and their tax advisors throughout the year to avoid the client feeling “ambushed” when the market is down in any one year and they still need to pay taxes on their funds’ capital gains.

Financial Advisors Working Together

Windward helps our clients compile Custodian Tax Letters, 1099s, and K-1’s so the client can seamlessly deliver all necessary information to the accountant.  We encourage all of our clients to contact their tax specialists when contemplating complex tax strategies.   We believe that the client needs Financial Advisors to achieve their financial objectives, Accountants to handle their tax matters, and Attorneys for legal matters.If your High Net Worth Client is questioning or feeling the pain of losing money in their investment portfolios and still having to pay taxes, encourage them to contact Windward Wealth Strategies for a complimentary review of their financial portfolio.