Whether we like it or not, taxes are part of the investing experience. Though we can’t avoid them completely, there are ways to properly manage the impact of taxes on client portfolios. In this week’s Tech Tip, we’ll explore the Tax Loss Harvesting Tools available in Eclipse Trading and ASTRO, two premier Orion products built to provide tax-efficient portfolio solutions.
Tax loss harvesting is the practice of selling a security at a loss to offset taxes on gains and income. The sold security is replaced by one with similar characteristics, so your client’s asset allocation and risk level stays consistent. Tax loss harvesting is usually most effective during volatile markets when selling at a loss during a downturn can help to offset gains during recoveries.
Using Eclipse Trading and ASTRO, you can recognize tax loss harvesting opportunities for your clients’ portfolios, helping reduce the impact of taxes on long-term assets.
In Eclipse Trading, there are settings to identify these opportunities, and the interactive dashboard will alert you to portfolios that have tax loss harvesting opportunities when a portfolio meets the criteria for the setting. After reviewing the portfolios, running the TLH Trade Tool will propose buy and sell trades, based on the alternate securities selected. You can then review and decide to execute on the proposed trades from the Orders Grid.
ASTRO allows you to be tax aware and reduce risk while transitioning new accounts, replicating an index, or implementing a new target strategy using individual securities.
The set up for using the Tax Loss Harvesting Tool in Eclipse Trading can be done in four easy steps:
- Setting the preferences and alternate securities
- Review the interactive dashboard
- Run the Tax Loss Harvesting Tool
- Review and execute the proposed trades
The Tax Loss Harvesting settings in ASTRO allow you to harvest:
- Short Term Losses
- Long Term Losses
- Lots that are greater than a $ or %
If you’re interested in what Eclipse Trading and ASTRO can do for your clients, join our upcoming webinars!
ASTRO: June 19 11:00 AM CT
Eclipse Trading: June 25 11:00 AM CT
If you have questions or need additional assistance, feel free to contact our Platform Support team at firstname.lastname@example.org