AssetMark Launches Tax Management Services to Help Advisors Unlock Tax Efficiencies for Their Clients
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Insights
The introduction of AssetMark's new Tax Management Services represents a strategic move to enhance the company's competitive edge in the wealth management industry. These services, including tax transitions, tax-efficient rebalancing and tax loss harvesting, are designed to optimize tax implications for investors, which can be a significant factor in net investment performance. By providing a more personalized and automated approach to tax management, AssetMark may see an increase in platform adoption, particularly among high-net-worth individuals who often have more complex financial situations.
From a financial standpoint, the ability to minimize capital gains taxes and effectively manage tax liabilities can lead to improved after-tax returns for clients, which is a compelling value proposition. This can translate into higher client retention rates and an increase in new client acquisition for advisors using AssetMark's platform. Over time, if the Tax Management Services are well-received and widely adopted, AssetMark could experience an uptick in revenue, driven by increased platform usage and potentially higher asset under management (AUM) figures.
AssetMark's launch into advanced tax management services is indicative of evolving investor preferences and a growing demand for sophisticated financial tools. As investors become more tax-aware and seek strategies to manage their liabilities, wealth management platforms that incorporate tax optimization features stand to gain a competitive advantage. The move by AssetMark is likely a response to market research indicating an appetite for such services, especially among the emerging affluent and high-net-worth clients who may find significant value in tax optimization.
Moreover, the integration of these services into a digital platform addresses the increasing trend towards technological solutions in financial management. By enhancing user experience and providing comprehensive reporting, AssetMark is not only catering to the immediate needs of advisors but also positioning itself to capitalize on the broader shift towards digital wealth management solutions.
Tax management is a critical component of wealth management that can have profound effects on an investor's portfolio. AssetMark's emphasis on a personalized approach to tax sensitivities and risk tolerance is particularly noteworthy. The ability to tailor tax strategies to individual financial goals allows for a more nuanced approach to wealth management. This level of customization is essential for optimizing the tax efficiency of investment portfolios.
AssetMark's services like tax loss harvesting, which involves selling securities at a loss to offset capital gains taxes, can be particularly beneficial in volatile markets. The automation of such processes could provide a systematic approach to capturing losses, which can be especially useful during market downturns. The ongoing management aspect ensures that portfolios are continuously evaluated for tax optimization opportunities, which could lead to significant long-term tax savings for clients.
New services include tax transitions, tax-efficient rebalancing and loss harvesting
CONCORD, Calif., Jan. 16, 2024 (GLOBE NEWSWIRE) -- AssetMark, a wealth management platform powering independent financial advisors and their clients, today announced the launch of its new Tax Management Services, a testament to its commitment to advisors' needs and preferences. The comprehensive and user-friendly set of solutions helps drive better outcomes on taxable assets through a personalized process that is straightforward and seamless for both advisors and clients.
“Advisors have long sought a robust tax management solution, and we've delivered,” said David McNatt, Head of Investment Solutions at AssetMark. “Our Tax Management Services provide advisors with the power to tailor portfolio strategies for each client's unique financial goals, risk tolerance, and tax sensitivities, all within a seamless, client-centric process.”
Driven by advisors' strong demand for a top-tier tax management solution, AssetMark developed a comprehensive suite of services, including tax transition, tax-efficient rebalancing, tax loss harvesting, and client-directed activity. The Tax Management Services can help moderate the impact of capital gains taxes on performance returns and investing outcomes. The intuitive digital platform enables advisors to personalize plans to each client’s unique needs, including tax sensitivities, risk tolerance, realized capital gains budget and investment preferences, on an ongoing basis. It also provides comprehensive reporting, allowing advisors to regularly quantify and reinforce their positive impact and value to their clients.
“In today's competitive landscape, advisors need every tool at their disposal to differentiate their services and deliver exceptional value that enables them to retain and deepen relationships with existing clients while growing their business. Tax planning is in high demand from investors, particularly from high-net-worth and emerging affluent clients who require more complex wealth management. AssetMark’s new turnkey solution allows advisors to stay in control while leaving the heavy lifting to us. This was a collaborative effort with our clients, and with Tax Management Services, advisors can differentiate their practices and help deliver optimized investor outcomes,” said McNatt.
AssetMark's Tax Management Services operate seamlessly for both asset transitions and ongoing management, providing the automation and scale for advisors to continuously assess potential tax-loss harvesting and optimization opportunities across all enrolled portfolios.
For more information on AssetMark’s Tax Management Services, visit www.assetmark.com/tax-management-services.
About AssetMark
AssetMark operates a wealth management platform that powers independent financial advisors and their clients. Together with our affiliates Voyant and Adhesion Wealth, we serve advisors of all models at every stage of their journey with flexible, purpose-built solutions that champion client engagement and drive efficiency. Our ecosystem of solutions equips advisors with services and capabilities that would otherwise require significant investments of time and money, ultimately enabling them to deliver better investor outcomes and enhance their productivity, profitability, and client satisfaction.
Founded in 1996 and based in Concord, California, the company has 1,000 employees. Today, the AssetMark platform serves 9,300 financial advisors and 251,000 investor households. As of September 30, 2023, the company had
Contacts
Investors:
Taylor J. Hamilton, CFA
Head of Investor Relations
InvestorRelations@assetmark.com
Media:
Alaina Kleinman
Head of PR & Communications
alaina.kleinman@assetmark.com
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