The Opportunity Hidden in Plain Sight
Every time markets move, opportunity knocks. Not in the form of a perfect trade, but in the quiet potential of a well-timed loss.
Tax loss harvesting (TLH) is one of the most reliable sources of after-tax alpha, additional after-tax return an investor generates through effective tax management strategies, in modern portfolio management. According to MIT research, a disciplined TLH strategy can add up to 1.1% in annualized returns and as much as 2% during periods of volatility.
Yet, despite decades of data, even enterprise RIAs and broker-dealers routinely miss out because their infrastructure isn’t set up to support tax-loss harvesting.
Ad Hoc Tax Loss Harvesting — Why Advisors Miss Out on Opportunities
“Most firms don’t fail to see opportunities — they fail to act on them in time.”
The Oversight That Costs Millions
Legacy portfolio management and trading systems weren’t built for synchronized scalable tax logic.
At most firms, the portfolio management system will identify a loss-harvesting opportunity. But by the time it’s manually transferred to the OMS for execution, volatility has already erased the gain.
That latency, multiplied across thousands of accounts, costs real money. For a $5B RIA, missing just 0.8% in after-tax performance equates to $40 million in client value lost annually.
And that’s before considering the compliance exposure.
Wash Sale Rule — Avoid Tax Loss Disaster: Compliance Warning
Without pre-trade, household-level oversight, one inadvertent repurchase in a spouse’s IRA can invalidate an entire harvesting cycle. Firms face this real operational risk every trading day.
The Human Cost of a Manual System
Manual, episodic TLH, often executed in a year-end rush, is quickly becoming obsolete. Today’s clients expect proactive, intelligent, always-on tax awareness.
That means infrastructure that can continuously monitor portfolios, assess opportunities, and act without adding compliance risk or operational drag.
Tax Alpha — Unlock Hidden Value in Your Portfolio
Flyer’s Co-Pilot platform uses AI and automation to bring this to life, continuously scanning portfolios, simulating wash-sale exposure, and executing trades across custodians in real time.
The result: true tax intelligence at scale.
Rebalancing Smarter, Not Just Faster
Every moment of market movements presents a fleeting chance to realize value, but only if your systems can act immediately with clean, synchronized data.
When PMS, OMS, and custodians operate in perfect sync, volatility transforms from a threat into an advantage.
Unlock Tax Savings — The Power of Tax Loss Harvesting (Explained!)
At the forefront of modern rebalancing, speed meets accuracy to create consistent after-tax performance.
Technology, Not Intention, Is the Limiting Factor
Every firm wants to deliver better after-tax outcomes, but siloed systems and manual workarounds make it impossible to act dynamically on tax signals.
Flyer’s Modern TLH Architecture bridges that gap, embedding tax-aware logic directly into the trading core.
With Flyer, firms gain:
- Multi-custodial account synchronization: One interface to view integrated account data regardless of custodian.
- Pre-trade compliance: Wash-sale risks are flagged before execution.
- Real-time tax-smart trading and rebalancing: Precision, speed, and control in one workflow.
No system replacement required, just scalable, composable infrastructure that empowers your existing stack.
The Cost of Standing Still
Every day that tax-loss harvesting remains manual or reactive, firms lose both alpha and momentum. The firms leading the next generation of tax management aren’t chasing trades; they’re architecting systems that make opportunities automatic.
If markets move, your clients expect your systems to move faster.
Download our white paper: The Modern TLH Architecture — How AI and Automation Are Transforming After-Tax Returns
Ready to see where your firm stands?
Schedule a complimentary Pros & Cons Infrastructure Analysis with Flyer leadership.
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Thank you to industry expert, John O’Connell, CEO and Founder of The Oasis Group for his insights on our Tax Loss Harvesting webinar.
