HFA Partners with 55ip to Leverage Intelligent Tax Management Technology
High Falls Advisors is pleased to announce a new partnership with 55ip, a financial technology company that helps innovative advisor firms across the country break down key barriers, such as taxes, to clients’ financial progress.
This partnership provides our financial advisors with the support of “intelligent automation” to employ a more systematic approach. Specifically, we use 55ip for automated trading and rebalancing, which is the process of ensuring our clients’ investments stay aligned with the strategy we’ve selected for them. Why does this matter? Especially in volatile markets, systematic rebalancing may have a substantial impact on investment outcomes at the end of the year—and over the long term.
55ip is particularly powerful for HFA clients with taxable accounts. During periods of volatility, tax-smart investing enables us to do more than simply help them “stay the course.” With 55ip’s ActiveTaxSM Technology, we’ll be able to make moving to an updated investment strategy more tax-efficient, if appropriate, as well as enhance after-tax returns through a systematic approach to “tax-loss harvesting,” a sophisticated investment technique.
Here are three ways we can use 55ip’s ActiveTaxSM Technology to ease our clients’ tax burden:
Tax Smart Transitions: Minimize taxes when moving existing holdings to a model portfolio through the use of Tax Loss Harvesting — Realize losses, when it makes sense, to offset some or all of the taxable gains from other parts of the portfolio.
Tax-Smart Ongoing Management: Create tax savings to increase after-tax return potential through automated, systematic tax-loss harvesting.
Tax-Smart Withdrawals: When it’s time to draw on investments for income, determine how to meet income and tax needs in a tax-efficient way.
Existing HFA clients will receive a letter notifying them of this partnership and a Separately Manage Account Addendum (SMA) that will allow us to fully implement 55ip technology into the service they receive from High Falls Advisors.To learn more, please contact our office or call (585) 935-5300.