No service or strategy described here, will prevent the realization of taxable gains from your investments. The services or strategies seek to minimize the current impact of taxes on your account but will not eliminate the eventual realization of imbedded gains from your account. Frequent withdrawals from your account will increase the likelihood of the realization of taxable gains from your account. Additional fees, commissions, or trading charges related to tax management services or strategy may apply. There is no assurance that the benefits of tax management services or strategies will exceed applicable fees, commissions, or trading charges in any given year.
Asset Location
with PNC Wealth Management
How It Works
Coordinating investment strategies across different account types may improve investor outcomes.
The type of account that holds your investments can make a big difference when it comes to maximizing your after-tax returns – taxable vs. tax-deferred accounts.
If you have money in both taxable and tax-deferred accounts, then an asset location strategy may be right for you when it comes to optimizing your after-tax investment performance.
For example, some investments may be more suitable for a taxable account like low turnover funds (ETFs and mutual funds), growth stocks that reinvest dividends rather than pay them out to the investor and municipal bonds that pay out tax-free interest income. These types of investments generally experience low tax consequences and may be best positioned in a taxable account.
On the other hand, some investments may be more suitable for tax-deferred accounts (IRA or Roth) like fully taxable bonds and bond funds, preferred stocks or higher turnover investment funds that create larger amounts of realized short-term gains.
Multi-Account Management
At PNC Wealth Management, we feature a program called Multi-Account Management that can help you determine how to allocate your overall investment portfolio across your taxable and tax-deferred accounts to help remain diversified and tax-efficient.
Working with PNC Wealth Management
Neither PNC Wealth Management nor your Financial Advisor provide tax advice. You should review your tax situation with your own independent tax professional to fully evaluate how you may benefit.