Tax Efficient Portfolios Phocas Financial stresses tax-efficient investment management strategies. Minimizing taxes not only reduces your cash outflow, but also allows more of your money to continue working for you. We are long-term investors, and are not quick to sell investments. In addition, we have the ability to manage your portfolio's capital gains so that there is less likelihood of paying unnecessary taxes.
Offering individual security selection to our clients allows for more tax-efficient portfolios. A significant factor in keeping capital gains taxes low is to sell stocks infrequently - in other words, maintaining a low turnover in the portfolio. While we are always assessing the value of the company versus its stock or bond price, we also consider the tax consequences before selling any security.
Each portfolio is unique, and clients often have securities with extremely low cost bases. Phocas has the ability to monitor each security and will assess the valuation relative to the tax liability. In the event the downside becomes too severe, we will not sell the security until discussing the situation with the client.