The views expressed in these posts are those of the authors and are current only through the date stated. These views are subject to change at any time based upon market or other conditions, and Eaton Vance disclaims any responsibility to update such views. These views may not be relied upon as investment advice and, because investment decisions for Eaton Vance are based on many factors, may not be relied upon as an indication of trading intent on behalf of any Eaton Vance fund. The discussion herein is general in nature and is provided for informational purposes only. There is no guarantee as to its accuracy or completeness. Past performance is no guarantee of future results.

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It's Never Too Late to Talk Taxes with Clients

By Eaton Vance Advisor Institute

A common question we receive is, "how do I navigate initial client conversations about ways in which their portfolios aren't as tax efficient as they could be?"

It's important to recognize that many tax-efficient investment strategies are relatively new and only now becoming commonplace. Some strategies that have been around for a long time only became available to mass affluent investors relatively recently. How you frame the conversation matters. Consider using one of these three conversation starters:

  • "In light of the likelihood of tax reform, are you open to looking for ways to use your investable assets to help minimize your tax burden?"
  • "Given the significant growth of your assets over the past few years, it might be beneficial to explore how tax efficiency within your investment portfolio could be impactful."
  • "Because your wealth has grown, you now have access to more tax-efficient investment vehicles. We should think about reallocating a portion of your portfolio to be as tax efficient as possible."

Words matter. How you frame the after-tax conversation with clients will determine your success.

Bottom Line: It's never too late to start the after-tax conversation. If left unchecked, taxes can erode portfolio returns, diminish disposable income and impact wealth longevity.