Tax Optimization
At Stellaris Investments, we believe that what you keep after taxes matters as much as what you earn before them. Our Tax Optimization practice integrates sophisticated tax strategy into every aspect of portfolio management, delivering meaningfully higher after-tax returns without altering your investment risk profile.
Tax-Loss Harvesting
Our systematic tax-loss harvesting program monitors client portfolios daily for harvesting opportunities. When a security has declined from its cost basis, we sell it to realize the loss (which can offset capital gains or reduce ordinary income up to $3,000/year) and immediately reinvest in a highly correlated replacement security to maintain market exposure. Over a full market cycle, this strategy typically adds 0.5–1.5% per year in after-tax returns.
Asset Location Strategy
Not all investments belong in the same type of account. Tax-inefficient assets — high-yield bonds, REITs, actively traded funds — are placed in tax-advantaged accounts where possible, while tax-efficient assets like index funds and buy-and-hold equities are held in taxable accounts. Proper asset location can add 0.2–0.8% in annual after-tax returns without any change in investment risk.
Concentrated Position Management
Many of our clients arrive with large concentrated equity positions — often from a single employer or founding stake — that carry substantial embedded capital gains. We use a toolkit of strategies including charitable remainder trusts, exchange funds, structured collars, and installment sales to reduce concentration risk in a tax-efficient manner tailored to each client's basis, timeline, and philanthropic goals.
Estate & Gift Planning Integration
We work closely with estate attorneys to implement structures that minimize estate tax exposure while preserving family wealth. Commonly utilized vehicles include grantor retained annuity trusts (GRATs), intentionally defective grantor trusts (IDGTs), qualified opportunity zone investments for deferred gain, and donor-advised funds for philanthropic clients.
Important Disclosure: Past performance is not indicative of future results. All investments involve risk, including the possible loss of principal. The information presented here is for informational purposes only and does not constitute investment advice. Please consult your Stellaris Investments advisor before making investment decisions.
Key Metrics
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