We all understand that if you pay less tax, you will have more money left over to spend, invest, or use for whatever purpose you choose. Even though everyone would agree that this is true, not everyone has the mechanisms in place to minimize their own tax burden. The reasons for this lack of action are many but can be summarized by the fact that it takes time, resources, and skill to make the most of your investments. The higher your rate of tax, or the tax bracket you are in, the more important it is to minimize investment-related liabilities.
With the assistance of your tax lawyer or adviser, Asiom Infinity Capital can incorporate several ways of reducing tax into the management of investment portfolios.
An increasing number of independent researchers have come to the conclusion that traditional investment management techniques fail to generate superior returns after tax liabilities are taken into account. Applying this conclusion means avoiding high levels of turnover and tax-inefficient investment strategies and instead concentrating on more scientific, tax-efficient portfolio management. The usefulness of this approach also depends on the client’s personal tax situation and the laws applicable where the client is resident for tax purposes.
Investments with less turnover have more tax efficiency. On average, investments selected by Asiom Infinity Capital are more tax-efficient than most competitor’s approaches. Also, when capital gains do occur, they tend to be long-term gains. This matters as short-term capital gains are typically taxed as regular income rather than more favorable long-term capital gains rates. The usefulness of this approach also depends on the client’s personal tax situation and the laws applicable where the client is resident for tax purposes.
