Portfolio Optimization

Tax planning is a value-added service that advisors and accountants can offer to clients. GainsKeeper provides portfolio optimization tools and strategies to help manage your clients' investment portfolios in the most tax-efficient manner.

Need	Portfolio Optimization Feature
Increase your clients' after-tax returns	GainsKeeper provides trading strategies to maximize clients' after-tax returns and minimize their taxes.
Provide clients with the tax implications of their trades before they place them	GainsKeeper has a tool that allows advisors and accountants to generate pre-trade analysis for their clients.
Assist your clients in maintaining their investment objectives	GainsKeeper's portfolio analytics tool will help clients meet diversification goals and balance their portfolios accordingly.

Increase your clients' after-tax returns

GainsKeeper's trading strategies enable you to identify trades that can improve your clients' tax position.

• Realize a short-term loss before it becomes long-term. GainsKeeper shows positions in a portfolio that are approaching long-term status, displaying market value and current gain/loss against that value.

• Avoid wash sales. GainsKeeper identifies positions in a portfolio that will trigger a wash sale if traded on the current day, so advisors and accountants can help clients avoid those trades.

• Identify investments for the "Double Down" strategy. With the Double Down strategy, investors take positions that are currently in a deep losing state, and double their holdings in them. After waiting 31 days to be outside the wash sale window, those shares are then sold at a loss. GainsKeeper will notify advisors and accountants to positions in their clients' portfolios that are good candidates for the Double Down strategy, allowing your clients to recognize losses for tax purposes without losing their stake in the positions.

• Sell partial positions using Specific ID. Many investors fail to maximize the benefits of selling specific lots. GainsKeeper enables your clients to sell shares using Specific ID rather than FIFO or Average Cost.

• Use "Sell Grades" to sell optimal lots first. GainsKeeper's Sell Grade measures the tax consequences of your clients' selling their investments and ranks them accordingly. The higher the Sell Grade value, the more favorable the trade is from a tax standpoint. GainsKeeper assigns a Sell Grade to each holding and then ranks them from highest Sell Grade to lowest Sell Grade.

  A Sell Grade greater than 1.0 will save your client tax dollars.
  A Sell Grade of 1.0 is neutral and has no tax impact.
  A Sell Grade less than 1.0 will cost your client tax dollars.

  GainsKeeper's Sell Grade is derived from a proprietary algorithm that considers each tax lot's adjusted cost basis (i.e. the original cost basis adjusted for all wash sales and/or corporate actions), current holding period (i.e. long-term or short-term), current market price, and, most importantly, your client's personal tax rate and previous realized gains/losses, including the character of those gains and losses. In this way, GainsKeeper's Sell Grade is customized to your client's portfolio and tax situation.

• Recognize losses. With GainsKeeper's tax optimization tool, advisors and accountants can enter clients' carryover losses to determine the impact of their gain/loss. GainsKeeper will then identify the maximum potential for savings from selling off losses and point to the specific lots.

Provide clients with the tax implications of their trades before they place them

GainsKeeper's trading simulation tool allows advisors and accountants to evaluate the tax impact of clients' trades based on information in their portfolios.

Assist your clients in maintaining their investment objectives

GainsKeeper's portfolio analytics tool lets you set your clients' portfolio targets for asset allocation, industry diversification and market caps. The tool calculates and displays holdings by market capitalization, stock exchanges, industry classification and top holdings, as a percent of the portfolio's total investments. Diversification targets can be set for taxable accounts, retirement funds, or in the aggregate. The tool also provides trend analysis on the portfolio's diversification mix going back monthly, quarterly, semi-annually and annually.