This year, we proudly hosted our 19th annual Wealth Symposium. During this full-day, off-site event, our investment, financial planning, and legacy planning teams joined forces with our advisory teams to present and discuss in-depth research projects. The Symposium is a cornerstone event for us, fostering professional development and ultimately enhancing the strategies we pursue in service to our clients.

As in previous years, we welcomed outside guests to our Symposium. Dimensional Fund Advisor’s Co-Head of Strategy Research discussed with us their latest findings around volatility, premiums, and diversification of private and alternative investments.

We also had the privilege of hosting a panel discussion with three elite athletes who represented the U.S. in international competitions. The conversation explored how each tapped into their peak athletic performance, how they overcame challenges and setbacks, and how their athletic background has shaped their respective approaches to life and work.

Other topics on this year’s agenda included:

  • Tax loss harvesting
  • Roth conversions
  • In-depth analysis of our US stock exposure
  • Separately Managed Accounts (SMAs)

While you can expect to hear more from us on these topics, we’d like to highlight takeaways from two of our discussions.

Separately Managed Accounts

Separately Managed Accounts (SMAs) are investment accounts managed by professional investment managers and advisory firms for individual or institutional investors. While SMAs are more complex than mutual funds or exchange-traded funds (ETFs), they offer superior customization and tax-management options.

Instead of holding a mutual fund, the investor holds thousands of individual stocks that are traded daily, effectively creating a personalized fund. By holding the stocks individually, the SMA can engage in tax loss harvesting, even if the overall account value is increasing. Although this strategy isn’t a fit for all clients, it offers tax benefits for investors anticipating future gains from the sale of a business or real estate.

At Vista, it is important to have an SMA offering that is cost-effective, aligns closely with our investment strategy, provides robust diversification, and boasts superior tax management capabilities compared to alternative providers.

Traditional funds are the best option for most investors. However, in select cases where an SMA is appropriate, we offer a comprehensive and robust solution to our clients.

Roth Conversions

In a Roth conversion, account holders transfer some or all their funds from a tax-deferred IRA into a Roth IRA. Since Roth IRAs are funded with after-tax dollars, they offer the benefit of tax-free withdrawals in the future. However, it’s important to note that Roth conversions are irreversible.

We reviewed the mechanics of Roth conversions, identified ideal scenarios, discussed key considerations, and shared our advisory best practices. Our commitment to enhancing financial planning resources for our clients includes investing in software that assesses how a Roth conversion can impact the likelihood of a plan’s success.

While we do not replace CPAs, we’re here to provide guidance and assistance regarding Roth conversions, helping clients evaluate whether they align with their financial goals and plans.

If you’d like to learn more about Separately Managed Accounts, Roth conversions, or any other strategies we employ, please contact us or reach out to your Lead Advisor. Our team continuously studies and evaluates opportunities to adapt and grow as the investment and financial planning landscape evolves.