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Empower

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Sources

Personal Strategy ® Tax optimization - Empower empower.com Empower 10 facts

procedureEmpower reviews portfolios daily for rebalancing opportunities to create a systematic way of buying low and selling high, which provides the potential for enhanced returns.

claimSmart Weighting™ is a strategy used by Empower to provide more even exposure to factors such as size, style, and sector, potentially providing opportunity for better diversification for a portfolio.

claimEmpower's research indicates that proper tax management, by avoiding tax-inefficient funds and utilizing tax location and tax-loss harvesting, can improve portfolio returns by up to 1.0% annually.

measurementThe investment analysis tool provided by Empower assumes federal capital gains tax rates of 15% to 23.9%, state capital gains tax rates of 0% to 12.3%, federal income tax rates of 15% to 39.6%, and state income tax rates of 0% to 12.3%.

claimEmpower's Personal Strategy® tax optimization approach focuses on three key areas: asset location, tax-loss harvesting, and tax efficiency.

claimProjections generated by the Empower investment analysis tool are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results.

claimLoss harvesting benefits calculated by Empower assume a desire to rebalance the portfolio, which results in reduced benefits compared to a 'buy and hold forever' strategy.

procedureWhen calculating after-tax returns, Empower assumes the investor is in the highest federal marginal income tax bracket at the time of each distribution of income or capital gains, and that after-tax distributions are reinvested.

measurementEmpower's model assumptions for tax optimization include an available loss equal to 10% of portfolio assets, with an average loss of those assets being 15%, and tax rate assumptions for capital gains ranging from 15% to 36.2% and income ranging from 15% to 51.9%.

claimEmpower defines a 'Small Portfolio' as an investment portfolio with a taxable value less than or equal to $200,000.