Tax Deferred Assets
Choosing assets for taxable and non-taxable accounts can complicate optimization problems. The Optimizer offers a Tax-Deferment tool to assist with this decision.
Add a Tax-Deferred Asset
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Activate the tool by selecting the Create Tax Deferred Assets option in the Taxes Menu.
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The Choose Tax Exempt Percentage Window appears to ask what percentage of the optimal portfolio you want to devote to tax-deferred assets. Enter the percentage, and then click the OK Button. The Optimizer duplicates all of the assets in the current case. The duplicates appear above the original assets with "T/D" following the asset name in all asset lists.
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Enable the basic method of tax optimization in order to utilize these additional assets. Enter additional tax inputs on the Taxes Worksheet.
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The Optimizer automatically labels the tax deferred assets as tax free and applies the entered percentage as a customized constraint, which appears on the Constraints Worksheet. During optimization, the constraint forces the chosen percentage of the optimal portfolio to be in tax-deferred assets.
Disabling Basic Taxes deletes all assets that have "T/D" in the asset name.