Tax-managed investing 101

New to the active tax management concept? Explore this page for the highlights.

What is active tax managed investing?

Active tax-managed investing is a multi-step process aimed at decreasing the yearly taxation and long-term tax drag of capital gains or dividends in non-tax-deferred portfolios.

How does tax management help me?

In a world where investors are fixated on a pre-tax investment perspective, after-tax investment value tends to be an afterthought.

Yet, the compounding tax drag nevertheless continues to weigh down portfolios and reduce returns. Fortunately, this perpetual problem has a systematic solution in the form of active tax management. Designed to target actual problems faced by investors, this dynamic approach carries out real-time, year-round measures aimed squarely at minimizing avoidable losses and maximizing after-tax wealth.

How can tax drag negatively impact my ending wealth?

Even a 2% tax drag can have a massive effect on your portfolio. Our interactive Value of Tax Management calculator can show you the hypothetical effect this tax drag has on your investment outcomes.

Consider the hypothetical growth of a $100k portfolio over 10 years at a 7.5% return each year. If the portfolio's pre-tax return had a 2% tax drag, that portfolio would have an ending value of $171k. With optimal tax drag, that portfolio would have an ending value over $200k.

Try it out with our simple calculator and see how tax drag impacts your portfolio:

Select your range:


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Description of Customizable Inputs

Initial Investment

This is the total value of assets you want to model.

Time Horizon

Enter the number of years (10 or less) you want to model.

What about a specific investor scenario? Try out our Multi-Asset Portfolio (MAP) Builder Proposal Tool to see a more custom look at the tax management opportunity.

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Because it's not what you make, it's what you get to keep.

Explore our tax-managed portfolios designed to maximize after-tax returns.

Tax-managed model strategies

Where can I learn more about tax-managed investing?

Tax management blog posts from Russell Investments' experts

 
 

Tax management blog posts

Explore our tax managed funds and resources.

Tax-managed funds & tools

Russell Investments can help you oversee your tax-managed investments with an after-tax awareness.

Our approach to tax management

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