Trends in Separately Managed Accounts: Tax Loss Harvesting on the Rise

If you haven’t seen Jacob Gold on one of the cable business shows, you probably don’t own a television. The president and CEO of Jacob Gold & Associates in Scottsdale, Ariz., is the ubiquitous, go-to guy when the advisor view needs representing. He isn’t afraid to tell you what he thinks, which when combined with his energy and (sometimes overwhelming) enthusiasm, makes him a booking agent's dream.

“Every person’s needs are different, and separately managed accounts are just one arrow in our quiver,” Gold (left) says. “But it’s a big arrow, and when a client begins to speak about wants and needs, we really begin to think about the SMA that would be the best fit.”

Gold finds value with SMAs in the taxable environment, especially. The benefits of tax loss harvesting that SMAs provide allows Gold to be more tactical with his clients’ tax issues.

“Make no mistake; SMAs still have value within an IRA and in other non-taxable platforms,” he says. “But significant value is realized when we maximize losses our clients might have suffered when they were with other advisors.”