Before Running a Transition
Validate Tax Lots | Missing tax lot data is the most common reason transitions fail. |
Confirm Allocation Totals |
Target weights should total exactly 100%. |
Review Minimum Investments | Some models may require minimum investment amounts. |
Tax Management Best Practices
Start Conservatively
If a client’s tax tolerance is unclear:
Begin with a lower tax budget
Evaluate additional scenarios later
Compare Multiple Scenarios
Review multiple tax budget scenarios to evaluate:
Tax impact
Tracking error
Transition speed
Transition Monitoring
Monitor Market Movement
Price changes between analysis and execution can impact realized gains.
Review Cash Availability
Ensure sufficient cash exists to support transition activity.
Scheduler & Execution
Check Scheduler status; if off, liquidations won’t run automatically.
Use Tax Impact Report when Scheduler is off to guide manual liquidations.
Scheduler opens at 10:00 AM ET. Runs after 3:00 PM ET are best-efforts; trades after market close go next business day.
Verify sufficient cash to cover expected trades.
Monitor for market value swings that may alter liquidation order.
Move positions manually to speed up slow transitions.