Womack Relates Tax Tips to BOA?s Private Clients

Charles Womack, regional director of managed accounts for Eaton Vance Distributors Inc. of Boston, discussed tax strategies on Feb. 20 with a select group of Bank of America clients at the Embassy Suites Hotel in Rogers. Womack addressed about 20 high-net-worth customers and BOA staff at lunch.

Womack, also a manager of BOA’s separate accounts, discussed asset allocation and diversification within managed accounts and how upcoming tax changes will affect investment strategies.

In particular, Womack brought attention to the need for “loss harvesting” in some accounts to offset tax liabilities.

“Active tax management by investment managers is extremely important to a client’s taxable accounts, especially in historically normal equity returns of 9 to 11 percent per year,” Womack said. “Taxes could well become a person’s largest expense.”

Womack also pointed out some efficient sectors in the current equity market and told investors that it can be cost affective for them to use a “passive index” along with active managers.