If future stock and bond returns prove to be more modest, as many analysts are now forecasting, and taxes remain high or continue to grow, as has recently been the case, the use of tax-aware techniques will clearly take on added importance.  Unfortunately, advisors often overlook these benefits.

Tax-Aware Techniques Include:

Asset Location Management – Through the use of asset location management (the placement of each client’s portfolio assets with after-tax returns in mind) and separately managed accounts, advisors can support the design of an improved, more efficient after-tax portfolio.

 

Client objectives will change with retirement. Through the use of asset location management, Clearview Wealth Solutions can limit overall portfolio gain realization while maximizing loss realization.  This strategy can have a meaningful impact on after-tax wealth accumulation over time.

Selective Gain Realization – With proactive investment management and thoughtful security selection, the sale of many securities can be deferred, and thus capital gains deferred, for an extended period. 

Purchasing securities for the long term can support limiting current period taxes through postponed gain realization in taxable accounts. Limiting tax gains to those budgeted is one of the more important objectives at Clearview.  

Harvesting of Tax losses – Selling securities that have fallen below their original purchase price creates realized losses.  These losses can be used to offset gains realized elsewhere in the portfolio in the current or future years.  With most managers, loss harvesting only takes place near the end of the year. 

At Clearview, we look to harvest losses in a disciplined manner throughout the year as opportunities arise.

Holding Period and Tax-Lot Management – Short-term capital gains—investments held for less than 12 months—are taxed as ordinary income.  When held beyond 12 months, the investment qualifies for the lower long-term tax rate.  Engaged advisors typically use highest in, first out, or HIFO, tax-lot accounting to minimize the negative tax impact on sale and thus improve the timing of after-tax returns. 

At Clearview, we implement strategies that can add significant value, including proper tax-lot planning and execution

Wash Sale Avoidance – When a security is sold and then repurchased within 30 days of its sale, the realized loss cannot be used to shelter gains.  This wash sale situation can be difficult to avoid when several separate account managers, especially those with similar strategies, manage one portfolio. 

At Clearview, we employ one dedicated core manager to better control loss realization and the gains they may offset across the entire portfolio.

 

Knowledge – Results

Experts in Risk Management

Are you prepared for the next market correction or financial crisis?

Knowledge – Results

Experts in Risk Management

Are you prepared for the next market correction or financial crisis?

Knowledge – Results

Experts in Risk Management

Are you prepared for the next market correction or financial crisis?

Knowledge – Results

Experts in Risk Management

Are you prepared for the next market correction or financial crisis?

Real Retirement Solutions

designed to improve
  • Wealth Preservation
  • Management of Risky Assets
  • Peace of Mind

This is achieved through an ongoing assessment of market risks given your specific financial situation and goals.

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Professional Expertise

Leadership Team

Richard Furmanski

Richard Furmanski

CFA

has been a portfolio manager and analyst for over 35 years. He manages conservative, tax-efficient portfolios for both pre-retirees and retirees. His lower risk approach appeals to investors who want less volatility and competitive risk-adjusted returns.

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Mary Ellen Adam

Mary Ellen Adam

Director of Operations

has been in office administration for over twenty years. Her experience includes customer service, firm operations, and office administration. She interacts with our clients on a day-to-day basis and handles any requests that may arise.

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Frequently Asked Questions

If you can't find the answer to your questions here, feel free to give us a call at 847-847-2505

Do you manage both stock and bond portfolios?

Yes. We build a portfolio of conservative, high-quality stocks and hold them for the long-term. The average holding period is 4 – 5 years. Our focus is on stocks that are suitable for retirement portfolios.

Our high-quality bond portfolios are designed to provide both income and stability of principal. Bonds provide the anchor for balanced accounts (those holding both stocks and bonds).

What is your investment philosophy?
We take great care in purchasing only high-quality stocks and bonds intent on a multi-year holding period. Portfolio turnover and taxable realized gains are modest in comparison to other active managers. We do not time the market but will become more defensive, in terms of stock holdings, when market conditions warrant.
Will the portfolio be managed in accordance with my financial goals?
Yes. Each of our clients has a custom-tailored portfolio. These custom portfolios are designed to meet specific client objectives with a thoughtful approach to specific constraints such as risk tolerance. And as each client’s situation changes, the portfolio does as well. There is no cookie cutter approach.
What kind of expertise do you have and how can that help me in difficult markets?
We have been working with high-net-worth clients like you since 1982. Over that time we have helped them to navigate several bear markets and financial crises (including the stock market crash of 1987). We hold the Chartered Financial Analyst (CFA) and Certified Financial Planner (CFP) designations.
Are you sensitive to taxes when managing portfolios?
Yes. Our holding period for an individual stock averages 4 plus years which means our turnover is low and realized gains can be carefully managed. Further, where possible, we tax loss harvest small losses as a way of offsetting gains taken elsewhere in the portfolio.
How have you performed?
Results will differ by client and the level of customization but we have provided competitive investment returns for many years.
How do you charge for your services?
We charge a management or consultant fee based upon the size and level of customization of the account. As the account grows, we benefit together.

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