Ram Ramaswamy, Managing Director, Neuberger Berman discusses how advisors can build wealth through better, tax-aware portfolios.
A tax-managed strategy, ultimately aims to defer taxes by strategically harvesting losses in order to offset realized capital gains. In the long run, effectively managing and deferring capital gains taxes can have a huge impact on wealth creation and after-tax annualized returns. Implementing a tax-managed strategy through an SMA offers advisors the ability to loss harvest individual securities, personalize the strategy based on the individual, and other tax and cost advantages. Neuberger Berman’s managed account platform technology allows advisors to incorporate both active and passive strategies with customization and automated portfolio tax overlays.
According to Ramaswamy, the timing is critical for advisors to consider transitioning to a tax managed solution. Under the new administration, Biden’s proposed tax plan could potentially raise the personal income tax rate for top earners, nearly double long-term capital gains tax rate. The new tax plan also proposes changes around the corporate tax rate, social security taxes, and estate taxes.
Links:
Inside TaxM™: Transferring Concentrated, Low-Basis Positions to TaxM™ Accounts
Biden, Taxes and Your Portfolio
Neuberger Berman Personalized Portfolios
Founded in 1939, Neuberger Berman is a private, independent, employee-owned international investment manager. Grounded in fundamental research, innovation, and longterm investment performance, NB manages a range of equity, fixed income, private equity and hedge fund strategies on behalf of institutions, advisors and individual investors worldwide.
Ram Ramaswamy, Managing Director, joined the firm in 2017 as the Head of Investment Solutions for Neuberger Berman Breton Hill, where he leads the effort to develop asset allocation and risk management solutions to help clients meet their investment objectives. Prior to joining the firm, Ram was a member of Goldman Sachs Asset Management’s Alternative Investment and Manager Selection (AIMS) Group where he was responsible for selecting, monitoring and allocating funds in various asset classes, including credit, macro, commodity, real assets and quantitative strategies for institutional, high net worth, third-party clients and advisory mandates. In over his 16 years at GSAM, Ram helped build the AIMS platform to over $100 billion, creating innovative investment solutions, managing portfolio construction for multi-manager portfolios, implementing factor driven asset allocation models and leading the risk management efforts. Ram has advised institutional and high net worth clients on various topics ranging from asset allocation, investment strategy, manager selection and risk management. Ram received his BE in Engineering from University of Madras, an MS in Engineering from Rutgers University School of Engineering and an MBA from The Wharton School at the University of Pennsylvania.