Altruist Launches TaxIQ to Automate Tax Savings for RIA Clients

The modern custodian launched a suite of built-in tax management software, including automated tax-loss harvesting, to help investment advisors save their clients thousands on taxes

Altruist, the modern custodian built exclusively for RIAs, launched TaxIQ, a suite of tax management tools designed to help advisors maximize clients’ after-tax returns. Until now, the highly quantitative nature of tax management has limited firms’ abilities to provide these strategies at scale. With TaxIQ, Altruist advisors can automate tax savings with the click of a button. The technology is native to Altruist’s platform, which also includes capabilities for account opening, trading, rebalancing, reporting, and billing.

With Americans paying roughly a third of their lifetime earnings in taxes, seizing opportunities for tax efficiencies can drastically improve portfolio outcomes. Research suggests that advisors who leverage tax management solutions can outperform the market by 1-2% per year¹ while avoiding techniques like market timing and individual stock picking. Sophisticated tax strategies, however, have traditionally been time-consuming and quantitatively intensive, making them inaccessible to all but high- and ultra-high-net-worth clients.

“Advisors have long been searching for tax-sensitive investing capabilities that don’t require complex, manual processes,” said Adam Grealish, Head of Investments at Altruist. “Coupled with other capabilities at Altruist, like Direct Indexing and fractional shares, independent firms now have a robust set of tax-optimizing tools to help deliver exceptional client outcomes at a much greater scale.”

TaxIQ enables advisors to implement gains deferrals, wash sale avoidance, and opportunistic tax loss harvesting at the account level, all processed through Altruist’s automated, tax-sensitive rebalancer. Once fully activated, Altruist advisors will be able to pursue tax alpha on behalf of their clients without managing individual positions, selecting tax lots, or timing trades.

Tax loss harvesting, a feature within TaxIQ, is available for 10 bps per year, but advisors can trial the feature for free through September 2024. After September, tax loss harvesting will continue to be cost free in all fee-based models on Altruist’s Model Marketplace.

To learn more, visit blog.altruist.com/advisory/tax-management, and be sure to sign up for the live TaxIQ webinar with Altruist’s Head of Investments, Adam Grealish, on July 11 at 1 pm ET: https://events.altruist.com/tax-management-webinar.

ABOUT ALTRUIST

Altruist is the modern custodian for independent RIAs. Altruist combines a self-clearing brokerage firm with intuitive software for account opening, trading, reporting, and billing – all in one streamlined solution. With Altruist, you can create custom models, trade fractional shares, automate rebalancing, and share performance with clients using a modern mobile app. Learn more at https://www.altruist.com and follow Altruist on Twitter @altruist.

Tax Loss Harvesting fees will be waived until October 2024, after which such features will bear a 0.10% fee. If used in conjunction with a Model Marketplace model, this fee will be waived if the model incurs a Model Marketplace fee.

Altruist LLC (“Altruist”) offers registered investment advisers (“Advisors”) using the Altruist platform a suite of tax management tools, which are for Advisor use only. Advisors are solely responsible for determining the tax management services they deem appropriate for their clients. Review the “Altruist TaxIQ Tools and Rebalancer Disclosures” on altruist.com/legal for more information.

Referenced research did not consider Altruist or Altruist’s TaxIQ product and is included for general educational purposes only, results will vary. Past performance never indicates future performance.

Model Marketplace fees, implicit investment expenses and other account-related expenses apply. See altruist.com/model-marketplace for more information.

Altruist Corp ("Altruist") offers technology and tools designed to help financial advisors achieve better outcomes. Advisory and certain other services are provided by Altruist LLC, an SEC-registered investment adviser, and brokerage related products and services are provided by Altruist Financial LLC, a member of FINRA/SIPC. Nothing in this communication should be construed as an offer, recommendation, or solicitation to buy or sell any security. Additionally, Altruist or its affiliates do not provide tax advice and investors are encouraged to consult with their personal tax advisors. Clearing and custody of securities provided by Altruist Financial LLC. © 2024 Altruist Corp 3030 S La Cienega Blvd Culver City, CA 90232.

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¹ ‘The Role of ETFs in Active Tax Management,’ The Journal of Wealth Management, Bouchey 2016 https://www.pm-research.com/content/iijwealthmgmt/19/3/75

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