Tax-Managed Separate Accounts, Explained

Schwab’s Jason Diefenthaler breaks down the inner workings of tax-exempt investment strategies.

In this episode:

• The basics of tax-managed fixed income.
• Tax management tactics for separate accounts.
• Tips to measure client outcomes and manage expectations.

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Additional resources:

Read a summary of this episode: https://www.morningstar.com/business/insights/blog/podcasts/big-picture-in-practice/tax-managed-separate-accounts
Catch up on previous episodes: https://www.morningstar.com/views/podcasts/big-picture-in-practice
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Disclosures

There are risks associated with any investment approach, the Wasmer Schroeder Strategies have their own set of risks. The Wasmer Schroeder Strategies invests primarily in fixed income instruments and as such the strategies are subject to various risks including but not limited to interest rate risk, reinvestment risk, credit risk, default risk and event risk. Fixed income securities are subject to increased loss of principal during periods of rising interest rates. Fixed income investments are subject to various other risks including changes in credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications and other factors.

Past performance is no guarantee of future results. The material provided is for informational purposes only and contains no investment advice or recommendations to buy or sell any specific securities. The statements contained herein are based upon the opinions of Charles Schwab Investment Management, Inc., dba Schwab Asset Management™, and the data available at the time of the presentation which may be subject to change depending on current market conditions. This presentation does not purport to be a complete overview of the topic stated, nor is it intended to be a complete discussion or analysis of the topic or securities discussed. All opinions and views constitute our judgments as of the date of writing and are subject to change at any time without notice. Schwab Asset Management does not accept any liability for any loss or damage arising out of the use of all or any part of this presentation. This report should not be regarded by recipients as a substitute for the exercise of their own judgment and may contain numerous assumptions. Different assumptions could result in materially different outcomes. Please contact Schwab Asset Management for more complete information, including the implications and appropriateness of the strategy or securities discussed herein for any particular portfolio or client.

Wasmer Schroeder Strategies are available through Schwab's Managed Account Connection® program ("Connection"). Please read Schwab's disclosure brochure for important information and disclosures relating to Connection and Schwab's Managed Account Services®.

Portfolio Management for the Wasmer Schroeder Strategies is provided by Charles Schwab Investment Management, Inc., dba Schwab Asset Management, a registered investment adviser and an affiliate of Charles Schwab & Co., Inc. (“Schwab”). Both Schwab Asset Management and Schwab are separate entities and subsidiaries of The Charles Schwab Corporation.

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