Name: What Tax Efficient Account Location Can Do For Your Overall Portfolio Return
Uploaded: 2026-05-14T17:28:36Z
Duration: 1 min 11 s
Channel: Hazel Seo Heegyung Secco
Description: Your portfolio has a gross return and a net after tax return. The gap between them is tax drag. For most women with $1.5 million across multiple accounts, that gap is bigger than it has to be. Here's why. The same allocation is sitting in every account, your 401k, your Roth, your taxable brokerage.

Markets have rallied strongly since the end of March, as investors latched on to signs of progress in talks to settle the conflict in the Middle East and minimize further economic disruption. The S&P 500 is now up nearly 20% since those March lows, and the NASDAQ is up over 30%. Yet, when you look under the hood, equity performance has really not been evenly distributed. The rebound has been led primarily by only a handful of industries, notably semiconductors, uh, in addition to other tech and industrial companies that are involved in the buildout of AI related infrastructure, and also more, you know, speculative and unproven companies and industries. And so this is a narrow momentum-driven market where price action and not fundamentals, is the dominant force behind market performance. Stocks that are considered more value or quality oriented, have lagged significantly over that same time frame, despite strong Q1 earnings growth and an economy that looks poised for continued moderate growth. High narrow momentum creates risks in concentrated portfolios. Because the momentum slows, those stock leaders tend to correct quickly and violently. This is why we diversified your portfolios, keeping exposure to long term themes like AI, but positioning your your your holdings around forward-looking fundamentals and not attempts to chase short term performance. So these strong fundamentals can also help support portfolios in the event of more volatile markets. And we've taken profits in many of these strong performance year to date, helping reduce that concentration risk, and positioning your portfolios for the long term. Please don't hesitate to reach out to me or Liz with any questions or thoughts you may have, and we hope you enjoy your weekend.

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It never fails when I find a new prospect to meet with, there's always a question that I get asked, but I don't really get asked. Why is my portfolio not performing? Answers could be one of many different reasons, but oftentimes it's, they believe they're diversified and they're truly not. They believe they have the right mix of their investments to make it to their future goal, but they do not. It's like trying to be an auto mechanic and having no knowledge whatsoever of how an engine works. Being a portfolio manager is a skill. Even if you're dealing with a small amount of money, the optimization of your portfolio requires blending your goals in with the professional knowledge of how different investments work over the course of time and then adding in the element of how well. Do you handle risk? So, it's very important once again to work with someone who understands how to build portfolios to make them work for you versus you doing all the work and not getting the good results that you're looking for. If you're looking for help on this topic or any other financial topic, feel free to reach out to me or give me a call at 847-894. 2299 or email me at jim@jbnash.com and I'll be happy to give you some help.

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Once upon a time in a small village, family members would bathe using a single tub of water. The father would take the first bath and then the rest of the family would follow using the same water due to a lack of fresh supply. By the time it was baby's turn, the water was murky and filled with grime. When it was time to discard the bathwater, the mother was exhausted and hurried. She quickly poured the water out, not noticing that the baby was still in the tub. Luckily, a bystander saw the baby being swept away with the water and rescued the child just in time. The idiom warns against discarding something valuable while trying to get rid of something. Unwanted. Many investors, when faced with a severe pullback in the equity markets, a bad earnings report, or a geopolitical event or natural disaster are quick to discard their investments due to the significant loss of value. Being exhausted by the precipitous drop and feeling hurried to turn a profit, they discard something valuable along with the bad underperforming investments, and they do so to their detriment. Discarding good investments because of bad circumstances is like throwing the baby out with the bathwater, and that's just weird.

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Hello and welcome to another weird Wednesday where we look at the odd things that people do, especially when it concerns their money. Squatter's rights seems to be one of the weirdest laws known to mankind. So check this. Flash Shelton had squatters move into his home during the process of selling it, and get this, claimed that they were the victims and had a right to his home. So Flash waited until they're away from the home, moved in, changed the locks, and subsequently used the exact same squatter's laws to get rid of that undesirable occupant. Holy guacamole, Batman. He out squatted the squatter. Do you have undesirable capital losses squatting in your portfolio, dragging down performance, muting your gains? Do you feel powerless to get rid of this undesirable occupant in your investments? Well, there's an efficient method for ridding yourself of that undesirable squatter in your portfolio. Keeping undesirable capital losses in your portfolio is like welcoming squatters in your home. And folks, that's not only unwise, that's just weird.

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Portfolio optimization isn't about chasing winners—it's about aligning your investments with your goals, time horizon, and risk tolerance, then rebalancing regularly to stay on track.

Tax‑loss harvesting is a strategy that uses temporary investment losses in taxable accounts to reduce your tax bill and strengthen long‑term results. When an investment falls below what you paid, you can sell it, realize the loss, and reinvest the money in a similar (but not identical) investment to stay on track. Those realized losses can offset capital gains, reduce up to $3,000 of ordinary income each year, and carry forward to future years. The IRS wash‑sale rule prevents claiming a loss if you repurchase the same or substantially identical investment within 30 days, but you can choose a comparable alternative to maintain your market exposure. Investors use this strategy because it lowers taxes, supports long‑term compounding, and turns market volatility into an advantage without changing their overall plan.

Tax‑Loss Harvesting: What It Is and Why It Matters

Losing money on purpose is one of the most underused tools in a $1.5 million dollar portfolio. It's called tax loss harvesting and most women I meet aren't doing it on a schedule. Here's how it works. Every year, some positions in your taxable brokerage are down, even when the overall market is up. You sell the losing position, by a similar but not substantially identical replacement, and bank a tax loss without meaningfully changing your portfolio's exposure. That loss offsets capital gains elsewhere. A stock you sold for a profit, a mutual funds year-end distribution, a property sale next year, up to $3000 of net losses can also offset ordinary income each year. The rest carries forward. Indefinitely. Most women miss this lever entirely. Target date funds can't do it. 401ks don't allow it. Only taxable accounts work. If your wealth sits mostly in pre-tax retirement accounts, you don't have access to this tool at all. It's not exotic, it's not aggressive. It's a structural optimization used systematically only by the people who know to look for it. If this is something you're navigating, let's talk.

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Your portfolio has a gross return and a net after tax return. The gap between them is tax drag. For most women with $1.5 million across multiple accounts, that gap is bigger than it has to be. Here's why. The same allocation is sitting in every account, your 401k, your Roth, your taxable brokerage. It feels organized, it's actually expensive. Bonds in a taxable account get hit by ordinary income tax every year. Stock index funds in an IRA convert preferential capital gains rates into ordinary income at withdrawal. Two inefficiencies compounding quickly for decades, tax inefficient holdings, bonds, REIs belong in tax deferred accounts, high growth holdings belong in the Roth, where they're tax-free forever, tax efficient index funds belonging taxable where you control the timing. Same allocation, different placements. It's the closest thing to a free raise the tax code allows. Most portfolios miss it because the question never gets asked. If this is something you're navigating, let's talk.

https://media.advisorcheck.com/transcripts/6233372/6a0606446e449a2ffb4d8415/ac-6a0606446e449a2ffb4d8415-1785776549864.vtt

https://media.advisorcheck.com/1985197/videos/6a29316843afd41b8ab77d63/c51554e6-0dc4-42c3-a37a-3bb8d2f23682_9x16.mp4

Markets have rallied strongly since the end of March, as investors latched on to signs of progress in talks to settle the conflict in the Middle East and minimize further economic disruption. The S&P 500 is now up nearly 20% since those March lows, and the NASDAQ is up over 30%. Yet, when you look u

Listen to our Strategist, Chris Gula, CFA, discuss the concentration risk in today's market.

https://media.advisorcheck.com/839995/videos/6a2ada3be0af0d716aec890d/cce1a38d-6489-4bb9-a40e-336bc2eb635e_9x16.mp4

It never fails when I find a new prospect to meet with, there's always a question that I get asked, but I don't really get asked. Why is my portfolio not performing? Answers could be one of many different reasons, but oftentimes it's, they believe they're diversified and they're truly not. They beli

Good news: you don't need a fortune to build one. Small money can grow fast with the right guidance!

https://media.advisorcheck.com/5217885/videos/6a3afdc2824faa23c28f29bd/05981f6f-ced9-4330-89b7-dcea9c2490e9_9x16.mp4

Once upon a time in a small village, family members would bathe using a single tub of water. The father would take the first bath and then the rest of the family would follow using the same water due to a lack of fresh supply. By the time it was baby's turn, the water was murky and filled with grime

Don't let emotions get in the way of making wise investments!

https://media.advisorcheck.com/5217885/videos/6a38c10c3a30e375ffb86688/0654d901-2679-4f75-a436-eeddfd413335_9x16.mp4

Hello and welcome to another weird Wednesday where we look at the odd things that people do, especially when it concerns their money. Squatter's rights seems to be one of the weirdest laws known to mankind. So check this. Flash Shelton had squatters move into his home during the process of selling i

Don't let capital losses "squat" in your portfolio!

Tax‑loss harvesting is a strategy that uses temporary investment losses in taxable accounts to reduce your tax bill and strengthen long‑term results. When an investment falls below what you paid, you 

https://media.advisorcheck.com/6233372/videos/69fe3a3d0efe025bb43afda0/653088d1-513a-4ce8-bfb1-a2039519fa1d_9x16.mp4

Losing money on purpose is one of the most underused tools in a $1.5 million dollar portfolio. It's called tax loss harvesting and most women I meet aren't doing it on a schedule. Here's how it works. Every year, some positions in your taxable brokerage are down, even when the overall market is up. 

Lose Money on Purpose: The Tax Lever Most $1.5M Portfolios Skip

https://media.advisorcheck.com/6233372/videos/6a0606446e449a2ffb4d8415/b02c481f-f6d2-4de0-a992-9846d44be06f_9x16.mp4

Your portfolio has a gross return and a net after tax return. The gap between them is tax drag. For most women with $1.5 million across multiple accounts, that gap is bigger than it has to be. Here's why. The same allocation is sitting in every account, your 401k, your Roth, your taxable brokerage. 

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