Originally published on FundFire | By Danielle Verbrigghe | July 26, 2018

MyVest CEO Anton Honikman recently sat down with FundFire’s Danielle Verbrigghe to discuss the current and future state of wealth management. In this second video in the series, Anton talks about how wealth management firms can add value for their clients through with advanced tax optimization techniques.

Highlights from Anton’s interview:

If you look at how previously advisors used to add value for their customers, it was either through stock selection themselves or through selecting managers that were outperforming their peers through stock selection alpha.

With the advent of index funds and ETFs, at the expense of active management, the other areas for opportunity for an advisor to add value for their customer is through harnessing tax alpha.

Advisors and wealth managers haven’t necessarily had the tools to scale such a difficult process of optimizing taxes. There are a number of different vendors, however, out there who can help advisors do that at scale.

[Asset location] is still sort of a niche concept. And that is because the … orthodoxy is around “how can I manage an account for a customer?” And almost by definition, an asset location, which looks across accounts, does not apply in the single account context.

I think you’ll see more use of asset location over time, as goals-based wealth management and multi-account portfolios — multiple accounts servicing a common goal — becomes more prevalent in our industry.

Watch Anton’s full interview below:

Originally published on FundFire. (Free FundFire subscription, or two-week trial, required to view content.)