Enhancing After-Tax Wealth via Tax Loss Harvesting

For investors with $2M and above, maximizing after-tax wealth is more crucial than focusing solely on raw returns. This executive brief explores the importance of tax efficiency, structure, and coordination in investment outcomes, specifically through tax loss harvesting at scale. It highlights that improving after-tax efficiency by just 1% on a $2.5M portfolio could potentially add over $1M over 25 years. The document presents a case where a client with $3M reduced their projected tax liability significantly through strategic diversification and loss harvesting. It emphasizes the need for a coordinated approach involving advisors, CPAs, and estate counsel to maximize after-tax outcomes and reduce risks, while avoiding common mistakes such as treating taxes as an afterthought.