We are a tax-focused firm, so we invest like one. Where each investment is held, how long it is held and which shares are sold all affect what you keep, and we plan for all three.
Tax-aware investing means making investment decisions with their tax cost in mind. At Breakaway Financial Group that comes down to three habits: placing each portfolio in the account where it fits best, holding winning positions long enough to qualify for long-term rates, and choosing which shares to sell. It works alongside our tax planning.
Every account type is taxed differently, so the same investment can leave you with a different amount after taxes depending on where it sits. Financial planning research calls this asset location, and it is one of the few portfolio decisions that is about structure rather than market calls.
Placement matters most for the investments with the most growth ahead of them. Sheltering a steady, low-growth holding saves little. Sheltering a high-growth holding can matter a great deal over decades of compounding.
We set this up account by account, using the same model portfolios for everyone. See our model portfolios
Gains on investments held more than one year are generally taxed at lower long-term rates. In taxable accounts, our rules generally hold winning positions at least 13 months before selling them for ranking reasons. The extra month is a cushion. Risk rules can still call for an earlier sale when a long-term trend breaks.
When you buy the same investment at different times, each purchase is a separate tax lot with its own cost. When we sell in a taxable account, we generally draw first on lots that are long-term or at a loss, which can reduce the tax a sale creates.
Every trade in a taxable account can create a tax bill. Our portfolios rebalance only when holdings drift well away from their targets, not on a calendar, which keeps both trading costs and taxes down. How we manage risk
Most people's investment advisor and tax preparer never talk. When Breakaway Financial Group also handles your tax planning, the same team sees both sides: how this year's sales affect your return, and how your tax picture should shape what you hold and where.
Asset location is deciding which account holds which investment. Because taxable accounts, traditional IRAs and Roth accounts are taxed differently, placing each investment well can increase what you keep after taxes without changing what you own.
Long-term rates generally apply to gains on investments held more than one year. Waiting about 13 months leaves a cushion so a sale doesn't land just short of that line.
The holding-period and share-selection rules matter in taxable accounts. Trades inside IRAs and Roth accounts don't create a current tax bill, so placement is what matters there.
No. The investment rules apply either way. When we also handle your tax planning, the two are easier to coordinate.
The right setup depends on your accounts, your income and your plans. Let us look at your situation and show you where the opportunities are.
Book a planning conversationBack to our investment processThis is educational content, not personalized financial or tax advice, and not a recommendation to buy or sell any security or to adopt any investment strategy. Advisory services are offered through Savvy Advisors, Inc., an SEC-registered investment adviser; tax and business services are provided by Breakaway Financial Group. Investing involves risk, including loss of principal. Rules-based strategies may not perform as intended and can lag sudden market moves. Model portfolios are adjusted by the advisor for each client; individual results will differ. Past performance is not indicative of future results. Tax treatment depends on individual circumstances and tax law, which can change. Crypto assets are highly volatile and may not be suitable for all investors.