What is the Ellevest Tax Minimization Methodology (TMM)?

This is a method we use for Ellevest Membership, Digital, and Premium clients in order to strategically reduce your taxes, where possible, to help you get the most out of your potential returns. The Ellevest TMM works in two ways:

1. Your personalized investment portfolio may include accounts that are taxable right now, as well as retirement accounts that are tax-deferred until a future date. In order to make it less likely that taxes will eat into your potential returns, we include securities that might cost you less in taxes, like tax-efficient municipal bonds, in the accounts that are taxable right now. And we include securities that might cause you to incur more taxes, like corporate and government bonds, in tax-deferred retirement accounts.
2. When your accounts need rebalancing, we maximize your taxable losses (which help you save on taxes) and minimize your taxable gains (which cost you more in taxes) whenever possible.
   

Please note that our TMM strategies are not intended, nor should they be construed as, specific tax advice.