Navigating global capital markets is one challenge; outperforming after taxes presents an entirely different set of obstacles. Unfortunately, post-tax returns don’t receive enough attention in our industry. Is it because investment managers (CFAs) and financial planners (CFPs) are primarily compensated based on gross pre-tax returns? Or is it simply a matter of lacking the right tools? We believe investors should focus on post-tax net returns, because, as the saying goes: “It’s not what you make, it’s what you keep.”


And it’s never been more true. Over the past 15 years, nearly every asset class has experienced substantial wealth creation, resulting in significant unrealized capital gains—from public stocks and private equity to personal businesses, real estate holdings, and even physical gold and digital assets like cryptocurrency. Historically, investors looking to preserve gains or adjust exposures had to contend with capital gains taxes come April 15th. Fortunately, today’s strategies provide opportunities to reduce or even eliminate those taxes upon liquidation—without requiring irrevocable gifting or expensive legal and trust structures.

Since the 1980s, investors have recognized real estate as a powerful wealth-building tool, thanks to the introduction of depreciation laws that provide tax benefits and allow income to grow tax-deferred. Additional provisions, such as Section 1031 for tax deferral and the step-up in basis for tax-free transfers to beneficiaries, have further enhanced its appeal. For tax-sensitive investors, real estate was the major go-to strategy. Until now.

The evolution of the investment industry has continued. It always has. Partnerships of the 70s morphed into the mutual funds of the 80s and 90s, then to the ETFs of the 2000s to Direct Indexing of the last decade. But now we can enhance the portfolio structure once again. Today, taxable investors can reap significant tax benefits from a diverse range of investments, including stocks and bonds. In many cases, these benefits surpass those offered by real estate alone.

But now we can enhance the portfolio structure once again (if interested, please reach out to an Investate Wealth Advisor for further information as the intricacies of the Enhanced Structure are beyond the scope of this website or any brochure as they are the results of your unique needs, wants, and circumstances. These strategies are tailor made to your individual preferences.). By doing so, todays taxable investors can not only reap significant tax benefits from a diverse range of investments, including stocks and bonds, and may surpass those offered by real estate alone. In addition, these benefits can extend to a variety of assets and are not merely limited to real estate itself.

Additionally, tax benefits can now extend beyond capital gains and can be directly applied against income. But unlike traditional tax shelters tied to direct real estate ownership, modern solutions allow for tax offsets against both passive and no-passive income—meaning significant deductions can now be applied against W2 and 1099 earnings.