A Tax Boost for Your Portfolio | Alan Trice, Erik Averill, Brandon Averill, Justin Dyer | | AWM Insights #35

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Episode Summary

“It doesn’t matter how much you make, it’s what you keep.” We have heard this a thousand times. Everyone wants more money in their pocket.

“It’s not your gross (before-tax) returns that matter, it’s your net (after-tax) returns.” Yet, for all the disdain toward paying taxes, the majority of investors' portfolios are rife with high fees and expensive taxes. How important is this? 

If you are CA resident in the highest tax bracket you risk losing:

  • 37% Top Federal Rate

  • 13.3% Top CA Rate

  • 0.9% Medicare Addition al Tax

  • Total 51.2% Tax + 3.2% on investment income at tax time

Why? Mainstream advice from Wall Street is focused on the mass affluent, not those in the highest tax bracket.

Only 0.1% of singles & 0.7% of couples are in the highest tax bracket

At AWM, our investment focus is capturing the highest expected returns and maximizing after-tax returns.

Today we're joined by Alan Trice, Head of Advisory Services, at Gurtin. Alan is a specialist municipal bond manager with a singular focus on maximizing tax-exempt income for high net worth individuals and manages:

  • $50B In firm-wide dedicated municipal bond holdings

  • 30+ Dedicated municipal bond team members

  • 65+ Firm-wide credit analysts supporting dedicated municipal team

Next Steps

Don't let the tax tail wag the investment dog

Are you seeking a tax-free income? Do you live in a state with a high income tax? Are you looking for a customized portfolio for your individual needs? 

In this week's episode, we mention an upcoming free webinar that we'll be hosting on November 12 at 11:00am PST/1:00pm CST.

Attend this webinar to learn from the co-founders of AWM Capital on how to maximize your after-tax returns through strategies such as Selective State Municipal Bonds and tax efficient investing.

We have a limited number of spots available for this webinar, so register today at the link below!

Episode Highlights

 00:18

“It doesn’t matter how much you make it’s about how much you keep.” 

What matters most to your portfolio is not your gross, it’s your net.

1:07

How important is tax planning when it comes to your portfolio? Here’s an example of what Californians are paying at tax time. 

2:45

Fixed income in general fits into a portfolio for two purposes: 

1- To provide steady and consistent income 

2- Balance in a portfolio: it’s there for safety and diversification

3:36

Municipal Bonds are extremely tax efficient: almost all munis are completely exempt from the federal income tax rate.

5:33

What’s unique about municipal bonds compared to equities and other fixed income markets?

6:26

80% of the municipal bond market is in the retail space.

7:58 

Munis are really part of a highly diverse market, only around 30% of the municipal  market is general obligation debt.

10:15

Average Joe’s vs. the Pros: What’s the advice in getting in the municipal bond market

“This is a pretty misunderstood market. Generally would not recommend individual investors invested directly on their own in this market.” 

Stay Connected

AWM Capital: IG | LinkedIn | Facebook | AWMCap.com

Erik Averill: LinkedIn

Brandon Averill: LinkedIn

Justin Dyer: LinkedIn