Choreo empowers advisors, CPAs with new tax planning solution

Choreo financial advisors and the CPAs they collaborate with now have a new tool to manage daily tax impact assessments, while freeing them from a time-hungry manual process.

The firm is rolling out Choreo Tax Advantage, a new automated solution that evaluates client portfolios to ensure efficient and effective tax management with the aim of optimizing portfolios while potentially reducing tax events.

Matthew Gotlin, Choreo’s CIO & managing director, Wealth Management, says that the platform was designed to solve a crucial gap in the marketplace.

“Our team appreciates that tax planning is an integral part of comprehensive wealth management. We also know that creating strategies with close coordination between advisors and CPAs often has been a laborious and time-consuming process,” he said. “Now, with Choreo Tax Advantage, our financial professionals can maximize efficiency and effectiveness, while their clients gain the opportunity to capture tax savings in an improved manner.”

The first-of-its-kind platform has been created in association with SaaS firm Smartleaf and has been through rigorous research and development and testing via pilot programs.

As well as advisors and CPAs enjoying a high level of customization, the platform is also expected to make it easier for them to demonstrate to clients the advantage of a tax aware approach to wealth management.

Among the core features of the new platform:

• After-Tax Performance: Identifies strategies to reduce tax burdens while maintaining the portfolio’s target risk and return profile, leveraging tools like screening capabilities and values-based investments.
• Strategic Gains Deferral: Evaluates and advises on the timing of selling appreciated positions, managing risks associated with short- and long-term gains, and enabling tax deferral or reduction.
• Strategic Loss Harvesting: Suggests selling specific holdings to offset gains while recommending substitutes to maintain the portfolio’s asset allocation strategy.
• Tax and Gains Budgeting: Establishes tax and gains thresholds to optimize tax-loss harvesting and the realization of gains within defined limits.
• Automatic Tax-Minimizing Rebalancing: Conducts real-time rebalancing at the account and household levels, prioritizing taxable adjustments in qualified accounts to minimize tax impacts.
• Daily Account Monitoring and Adjustments: Automated processes enable swift, proactive responses to market volatility caused by global, national, or local events.
• Direct Indexing and Customization: Provides personalized portfolio construction, benchmark tracking, and tax management regardless of the chosen funds or equities.
• Advisor Efficiency: Automates trade-off assessments, such as weighing the benefits of realizing appreciated positions versus tax and transaction costs, reducing the need for manual reviews and tax-related adjustments across accounts.

“We built Choreo Tax Advantage with the philosophy that financial planning, investment management, and tax strategy should all align seamlessly to produce the optimal results for clients,” said Larry Miles, Choreo’s CEO. “With that in mind, we will continually enhance the capabilities and features of the platform in the coming months, to help our advisors, CPAs, and their clients succeed in any tax environment.”