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Advisors need systematic tax management to compete & win

“Money-in-motion” generally means opportunity for financial advisors. But what’s driving money-in-motion in the current environment? At 55ip, our belief is that industry trends and innovation—specifically, the shift to fee-based advice, the growth of models and indexing, and demographic transition from savings to spending—are the key forces at play. Generally, these are positive developments that represent real financial progress for end-clients. Money-in-motion is a good thing.

However, key barriers, especially taxes, often get in the way. 55ip helps advisors break down these barriers by providing tax-smart technology that advisors can use to elevate portfolio design, drive better outcomes, and grow their practice. I recently discussed the idea of “money in motion” and its importance for advisors in this short video.

2020 was a case study on the importance of tax management. The year was marked by extreme market volatility that left many investors concerned over the short- and long-term implications for their portfolios. While concerning, the fluctuations also presented an opportunity for advisors to implement tax-smart investment management techniques. In fact, The Wall Street Journal went as far as to call 2020 the “perfect year” for tax-loss harvesting. Most advisors conduct tax-loss harvesting at year-end, not realizing how much money has been left on the table for their clients. At 55ip, our ActiveTax Technology® positions advisors to implement this strategy throughout the year.

This equates to a significant savings for clients and a unique opportunity for advisors to showcase their overall value—but it’s only part of how our ActiveTax Technology® helps advisors and their clients. Perhaps even more critical for advisors are the tax-smart transitions that 55ip enables, which help advisors move clients into new model portfolios by breaking down the barrier of capital gains tax. As a result, advisors using 55ip have driven broader usage of models, with approximately double the assets in taxable accounts in models compared to incumbent platforms.

Our team’s mission is to be the industry standard tax-smart investment strategy engine. Nothing is more telling of this commitment than the latest news from our firm. Last month, we announced an agreement to be acquired by JP Morgan, a monumental moment for our business and one that will help us accelerate this mission. We are thrilled to engage in this partnership and are excited about our future and the new solutions, resources, and tools we can provide for our clients. Given our announcement—as well as other recent industry developments—it’s becoming more and more apparent that systematic tax-smart investment management is a competency that advisors need to compete for, and win, money-in-motion in 2021 and beyond.

For information on partnering with 55ip or leveraging our engine’s intuitive experience and intelligent automation, contact our Advisor Success Team at (617) 960-9559 or at

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