Asset location
for the win.
Demonstrating how asset location could save a couple money
in taxes and grow their portfolio, CovingtonAlsina, a registered
investment advisor, won a client and more than $14 million in new
assets to manage.
CASE STUDY
The situation.
A CovingtonAlsina client recommended her retired parents meet Ann
Covington, CFP®, CPWA®, founder of the RIA with offices in Annapolis, MD,
and Jacksonville, FL.
The couple's $14.3 million portfolio was 100% invested in Class A share mutual
funds, with large unrealized gains, held in a mix of taxable, trust, Roth and
traditional individual retirements accounts.
Income from capital gains was costing them money in taxes and in income-
adjusted Medicare premiums—and depleting their financial resources.
Other client needs.
CovingtonAlsina questions prospective clients about all their financial needs
and goals. In this case, the couple expressed concerns around:
"The clients were
thrilled with the
idea we could save
them money in
taxes. We presented
them with a plan
about what we'd
sell and replace it
with. It wasn't just,
'Oh, trust us.' We
could quantify with
numbers."
■ Their tax bills—and how to reduce them.
■ Market volatility and lowering their risk exposure.
■ Gifting to children and grandchildren and legacy planning.
Ann Covington,
CFP
®
, CPWA
®
Intended for financial intermediary use.
