Altruist Launches TaxIQ to Automate Tax Savings for RIA Clients
June 25 2024 - 10:00AM
Business Wire
The modern custodian launched a suite of
built-in tax management software, including automated tax-loss
harvesting, to help investment advisors save their clients
thousands on taxes
Altruist, the modern custodian built exclusively for RIAs,
launched TaxIQ, a suite of tax management tools designed to help
advisors maximize clients’ after-tax returns. Until now, the highly
quantitative nature of tax management has limited firms’ abilities
to provide these strategies at scale. With TaxIQ, Altruist advisors
can automate tax savings with the click of a button. The technology
is native to Altruist’s platform, which also includes capabilities
for account opening, trading, rebalancing, reporting, and
billing.
With Americans paying roughly a third of their lifetime earnings
in taxes, seizing opportunities for tax efficiencies can
drastically improve portfolio outcomes. Research suggests that
advisors who leverage tax management solutions can outperform the
market by 1-2% per year1 while avoiding techniques like market
timing and individual stock picking. Sophisticated tax strategies,
however, have traditionally been time-consuming and quantitatively
intensive, making them inaccessible to all but high- and
ultra-high-net-worth clients.
“Advisors have long been searching for tax-sensitive investing
capabilities that don’t require complex, manual processes,” said
Adam Grealish, Head of Investments at Altruist. “Coupled with other
capabilities at Altruist, like Direct Indexing and fractional
shares, independent firms now have a robust set of tax-optimizing
tools to help deliver exceptional client outcomes at a much greater
scale.”
TaxIQ enables advisors to implement gains deferrals, wash sale
avoidance, and opportunistic tax loss harvesting at the account
level, all processed through Altruist’s automated, tax-sensitive
rebalancer. Once fully activated, Altruist advisors will be able to
pursue tax alpha on behalf of their clients without managing
individual positions, selecting tax lots, or timing trades.
Tax loss harvesting, a feature within TaxIQ, is available for 10
bps per year, but advisors can trial the feature for free through
September 2024. After September, tax loss harvesting will continue
to be cost free in all fee-based models on Altruist’s Model
Marketplace.
To learn more, visit blog.altruist.com/advisory/tax-management,
and be sure to sign up for the live TaxIQ webinar with Altruist’s
Head of Investments, Adam Grealish, on July 11 at 1 pm ET:
https://events.altruist.com/tax-management-webinar.
ABOUT ALTRUIST
Altruist is the modern custodian for independent RIAs. Altruist
combines a self-clearing brokerage firm with intuitive software for
account opening, trading, reporting, and billing – all in one
streamlined solution. With Altruist, you can create custom models,
trade fractional shares, automate rebalancing, and share
performance with clients using a modern mobile app. Learn more at
https://www.altruist.com and follow Altruist on Twitter
@altruist.
Tax Loss Harvesting fees will be waived until October 2024,
after which such features will bear a 0.10% fee. If used in
conjunction with a Model Marketplace model, this fee will be waived
if the model incurs a Model Marketplace fee.
Altruist LLC (“Altruist”) offers registered investment advisers
(“Advisors”) using the Altruist platform a suite of tax management
tools, which are for Advisor use only. Advisors are solely
responsible for determining the tax management services they deem
appropriate for their clients. Review the “Altruist TaxIQ Tools and
Rebalancer Disclosures” on altruist.com/legal for more
information.
Referenced research did not consider Altruist or Altruist’s
TaxIQ product and is included for general educational purposes
only, results will vary. Past performance never indicates future
performance.
Model Marketplace fees, implicit investment expenses and other
account-related expenses apply. See altruist.com/model-marketplace
for more information.
Altruist Corp ("Altruist") offers technology and tools designed
to help financial advisors achieve better outcomes. Advisory and
certain other services are provided by Altruist LLC, an
SEC-registered investment adviser, and brokerage related products
and services are provided by Altruist Financial LLC, a member of
FINRA/SIPC. Nothing in this communication should be construed as an
offer, recommendation, or solicitation to buy or sell any security.
Additionally, Altruist or its affiliates do not provide tax advice
and investors are encouraged to consult with their personal tax
advisors. Clearing and custody of securities provided by Altruist
Financial LLC. © 2024 Altruist Corp 3030 S La Cienega Blvd Culver
City, CA 90232.
__________________________ 1 ‘The Role of ETFs in Active Tax
Management,’ The Journal of Wealth Management, Bouchey 2016
https://www.pm-research.com/content/iijwealthmgmt/19/3/75
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Media Sam Marinelli, Gregory FCA on behalf of Altruist
610-246-9928 sam@gregoryfca.com