PFP2421. Editor’s Choice: Optimizing Portfolios - Tailored Multi-Account Management for Success

Editor's Choice is the presentation of a feature article that showcases the cutting-edge research and insights of a leading scholar in the field of financial planning. Please join us for an interactive session with Morningstar’s Tom Idzorek who will present his recent article from the Financial Analysts Journal, Personalized Multiple Account Portfolio Optimization. Clients typically have multiple accounts with different tax treatments, such as traditional and Roth IRAs, traditional and Roth 401(k)s, and taxable accounts. This presentation will introduce a new method that can help you set tax-efficient asset allocation, harvest tax losses, and rebalance across these accounts. Learn how to optimize asset allocation across multiple accounts by taking into account factors such as taxes and trading costs. Discover how to: - Find the best location for each asset in the portfolio based on its tax characteristics. - Harvest losses by selling assets that have declined in value and buying similar ones to offset taxes. - Rebalance portfolios to keep them aligned with target allocation and risk preferences. - Decide whether to roll over money from one account to another, such as from a 401(k) to an IRA. - Transition portfolios from current holdings to desired holdings.

Learning Objectives:

• Identify the advantages of simultaneously optimizing across multiple accounts versus separate account-by-account optimization.
• Assess how simultaneous multiple account optimization helps with overall tax-efficiency through tax-efficient asset location, tax-loss harvesting, and tax-efficient investment selection.
• Evaluate how simultaneous multiple account optimization is the basis for making unbiased rollover decisions.