What are the tax considerations of investing?

Invest Forward's intelligent portfolio management algorithms automatically seek to minimize taxes. We do this through several methods:

Tax intelligent trading: We sell batches of securities with losses before gains, and batches with long-term gains before short-term gains in order to achieve the lowest tax rate and offset capital gains.

Tax intelligent rebalancing: Invest Forward uses all cash inflows including dividends and deposits to help bring your portfolio into alignment. This reduces the frequency in which we would need to sell securities, and potentially trigger a taxable event, in order to rebalance your portfolio. This reduces you taxable capital gains and increases investment returns.

Tax-efficient funds: Invest Forward portfolios are comprised of tax efficient mutual funds and ETFs. These low turnover of these funds can provide an estimated 0.7% in tax saving per year.

Intelligent asset location: We swap bond allocations in your taxable account to municipal bonds which are exempt from federal and most state taxes. Higher yielding bonds are placed in retirement IRA portfolios where their gains are not taxable until withdrawal.

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