Tax Sensitivity

“Tax sensitive” investing is crucial to building long-term wealth.  The Whittier Trust Company has considerable expertise in managing portfolios to maximize after-tax return.  Tax sensitivity is built into our investment philosophy and process.  We buy stocks for the long-term to reduce turnover, and carefully consider the tax impact when selling appreciated securities.

Taxpayers can benefit enormously from tax sensitive investing, which increases after-tax wealth in several ways.  Paying  long-term gains instead of short-term gains clearly reduces taxes.  Deferring taxes increases the amount invested, thus increasing the amount of investment return.  Tax deferral may also achieve elimination of capital gains taxes if the portfolio receives a step-up in cost basis.

Most institutions are primarily focused on investing for tax-exempt accounts, such as for pensions and endowments.  The Whittier Trust Company invests almost exclusively for taxpayers, and has learned to balance the conflicting goals of attractive returns, low taxes, and controlled risk.