Private Portfolios by Farah Private Wealth Management
Private portfolios are segregated investment portfolios that are professionally managed according to guidelines established by the investor and Farah Private Wealth Management. Unlike mutual funds, assets invested in private portfolios are not commingled with those of other investors. Private portfolios are tailored to the unique circumstances and objectives of the individual investor, including tax considerations, risk versus return requirements, and other financial goals. You will receive an independent monthly statement in your name listing all your securities.
Private portfolios combine the benefits of professional money management with the flexibility, control and potential tax advantages of owning individual securities. These portfolios may be appropriate for investors with significant assets who have long-term financial goals and special tax considerations.
Private portfolios offer investors an opportunity to customize their investment strategies and portfolio holdings according to their particular needs and objectives. With private portfolios you can:
Allocate your investments among an array of investment styles and disciplines to provide exposure to various asset classes through changing market cycles and to help smooth out fluctuations in returns.
Establish performance benchmarks to match your unique financial objectives.
Avoid investments in specific industries or companies.
Farah Private Wealth Management will help you define your investment guidelines for your private portfolio that consider other holdings in your portfolio. If your current portfolio is dominated by large positions in appreciated stock, we will seek to implement specific strategies designed to help you transition to a more diversified portfolio.
A tailored investment strategy, each account is unique to each investor
Tax Advantages of Private Portfolios
An important benefit of private portfolios is the portfolio
manager’s ability to work with you and your tax adviser
to coordinate investment activities to help manage your
overall tax liability. Tax-efficient strategy may result in
higher after-tax returns. In addition, specific securities
held in a private portfolio may be sold to generate gains
or losses that can be offset against returns from other
investments or against taxable income.
The potential tax advantages of private portfolios include:
Control over the realization of capital gains or losses. Because the underlying investments in private portfolios have a known cost basis and acquisition date, investors can direct the sole of specific securities in order to minimize realized capital gains. In addition, under current tax laws, long-term investors are positioned to benefit from the more favorable long-term capital gains tax rate
Characterization of income and capital gains distributions. Investors in private portfolios can seek to avoid income-producing investments and portfolio strategies that result in short-term capital gains, which are taxed at higher rates. This feature also makes private portfolios an attractive option for assets held in certain types of trusts, such as charitable remainder trusts.
No accrued tax liability. Unlike some pooled investments, new investments in private portfolios do not carry embedded capital gains. Active management around specific tax concerns. When discretionary trading on behalf of the investor, you can also take advantage of price fluctuations to
realize losses that may offset other gains, to time the recognition of gains, or to manage the cost basis of securities held in the portfolio.
An array of investment styles and disciplines to provide exposure to various asset classes through changing market cycles.