What does transitioning client assets look like at OpenInvest?
Meet and greet. First you’ll meet your OpenInvest Account Team. They will be available to answer any questions you have along the way and streamline the transition for you.
Tech walk-through. Your Account Manager will give you a personalized walk-through ofOptimus, our advisor web portal, to familiarize yourself with the platform and OpenInvest’s technology.
Client introduction. Meet with your clients and fill out the OpenInvest Client Questionnaire, the first step in launching their personalized portfolios.
Onboarding. Fill out the necessary custodian paperwork and either open or transfer the account to OpenInvest. Once we receive the necessary information, the client’s account is traded in according to their questionnaire within 2 business days.
Strategize and launch. Partner with your Account Manager to create a plan tailored to your specific needs. Together you’ll identify your primary business goals and develop a strategy to maximize the OpenInvest platform. As your needs evolve, OpenInvest will be there to support you.
Tax-loss harvesting at OpenInvest
At OpenInvest, tax-loss harvesting is made possible through our Dynamic Custom Indexing technology. Direct indexing provides a greater opportunity for tax-loss harvesting due to the ability to hold stocks that have advanced and sell stocks that have declined. Tax-loss harvesting at OpenInvest happens in two ways:
- Ordinary rebalancing. We restrict sales of stock positions that will generate capital gain, and thus, tend to sell positions that are at a loss.
- Proactive tax-loss harvesting. With our proprietary technology, we are able to set triggers to sell many positions that are at a loss. This may happen at the end of the year, throughout the year, and in response to market conditions. For example, in 2020, tax-loss harvesting during pandemic-related decline added significant tax value to many of our accounts. We proactively seek beneficial loss opportunities on behalf of your clients.
Tax transition tools at OpenInvest
To transition your assets in a tax-efficient manner, we offer the following:
- OpenInvest tax transition tool. Our specialized technology allows us to transition client assets to an OpenInvest portfolio in a tax-efficient way, continually seeking prime opportunities on behalf of your clients.
- Options and opportunities. Given a client’s specific portfolio and tax basis information, we can provide a menu of options best suited to their needs including trading off portfolio tracking error, capital gains, and ESG considerations. This selection allows the client to choose what combination of capital gain and tracking error best suits their financial needs, risk tolerance, and values.
- Capital gains budgeting. Our technology allows us to work within a capital gains budget for a given year. For example, we can create a portfolio with minimum tracking error given that a client wants to recognize no more than a certain amount in capital gains in a year.
- Transition planning. If your client prefers to transition an account over multiple years, we can create an illustrative “glide path” for fully transitioning an account to an OpenInvest portfolio with the client’s preferred benchmark and Causes over time.