Kevin Maeda, Chief Investment Officer, Direct Indexing, Natixis Investment Managers Solutions, describes how to transition an existing portfolio into an index-based separately managed account with minimal tax impact.
- There are many reasons investors may want to move their investments to a new account – but liquidating a portfolio and starting from scratch can trigger an unwanted tax bill.
- With a separately managed account, investors can transfer selected securities to the new account, selling only as much as necessary for proper diversification.
- Because each account is customized, investors can specify capital gains limits to minimize, delay, or avoid any net taxes.