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3 VITAL: Conversations about tax-loss harvesting. S&P 500 ® daily return 2021 2 2022 3 Days at a gain +143 +108 Days at a loss –109 –152 Stocks at a gain 443 157 Stocks at a loss 62 351 S&P 500 ® yearly return +28.71% –18.11% 2021 2022 Whether the broader market is trending up or down, volatility can present a compelling opportunity for investors. The key is having an ally—and the right technology—to monitor daily swings in stocks. Tax-loss harvesting can be "always-on" For many of us investors, market turmoil and seeing investments decline in price can be unsettling. But an "always-on" tax-smart approach helps you turn underperforming investments into a value-add opportunity. Importantly, the benefits of tax-loss harvesting can be had even in up markets. After all, in any given year some stocks and sectors go up, while others decline. Let's look at 2021, a very good year in the market, compared to 2022: Individual components matter Remember, market indexes like the S&P 500 represent a basket of securities; in this case, 500 of the largest public U.S. companies. However, the individual components of the index rarely move in unison. With access to the right technology and an "always-on" approach, investors and their advisors can use price movements to harvest tax losses at an individual level, regardless of broader market trends. Ask your advisor Tax-loss harvesting has the potential to make a difference in the performance of your investment portfolio over time. Here's what you should consider discussing with your advisor: 1. How do we begin? Set up a meeting with your advisor and ask how to identify the most appropriate specific tax-managed solutions and techniques that dovetail with your goals and objectives. 2. How can I possibly monitor an entire portfolio on a daily basis? Your advisor can introduce you to the tools that can automate this for you. This might include a tax overlay that can be applied to your entire portfolio. 3. How will a tax-loss harvesting strategy impact my overall asset allocation? This is a critical question and should be revisited periodically with your advisor, especially after any tax-loss harvesting. 4. Can tax-loss harvesting impact or alter my overall tax situation? You and your advisor can answer this together when you discuss your current and future anticipated tax bracket, among other things. You will also want to consider things like keeping your AGI (adjusted gross income) below the Medicare surtax, as well as state-specific considerations. MIND OVER M AT TER Tax-smart solutions can be automated to strategically help turn volatility into opportunity and help save on taxes—and often significantly. Tax management—and tax-loss harvesting, in particular—is not just for down years in the market. It's typically most beneficial in a proactive, "always on" approach, as opposed to a reactive "once-a-year" exercise. Your advisor can help you improve your tax-management game, so you aim to keep more of what you earn. 2 As of 12/31/2021. 3 As of 12/31/2022. Source: Factset & Yahoo! Finance. Index returns are for illustrative purposes only and do not represent actual investment performance. Index returns do not reflect any management fees, transaction costs, or expenses. Indexes are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results.

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