Description

In this episode of "Wealthyist," hosted by Brian Lamborne, Senior Wealth Strategist with the Annex Private Client Team, the focus is on tax-aware investing and aligning financial strategies with clients' purposes. Brian introduces Anthony Mlachnik, a new senior wealth manager at Annex Private Client, who shares his background and his experience working with complex clients nationwide.

The discussion centers on the importance of tax-aware investing, which involves aligning estate planning, investments, and tax strategies to optimize client outcomes. Anthony emphasizes the need to define a client’s purpose—such as family happiness or legacy building—to guide financial decisions. Key strategies discussed include:

• Tax-Aware Investing: Making investment decisions with tax implications in mind, such as minimizing taxes through asset allocation and loss harvesting.
• Purpose-Driven Planning: Helping clients identify their goals (e.g., spending time with family or passing wealth to future generations) to align financial strategies.
• Tax Loss Harvesting: Selling assets at a loss to offset capital gains, either in the current year or carried forward, to reduce tax liabilities.
• Managing Large Gains: Gradually reducing concentrated stock positions to avoid large tax hits, using tools like loss harvesting, donor-advised funds, or exchange funds for tax efficiency.
• Long-Term vs. Short-Term Gains: Prioritizing long-term capital gains for better tax rates and considering charitable giving to manage highly appreciated assets.
• Estate and Distribution Planning: Tailoring strategies based on whether clients want to spend wealth during their lifetime or pass it to heirs, leveraging tax benefits like step-up in basis at death.

Anthony stresses making investment decisions first and tax decisions second to avoid missing opportunities. The episode highlights the power of compounding tax savings over time and the importance of working with professionals to navigate dynamic tax laws and emotional decision-making, especially during retirement distributions. The episode concludes with a promise to continue the discussion in the next installment.