Ultra Tax Efficient Wealth Management®
Minimize your taxes. Maximize your wealth.
Taxes are the single biggest expense most people pay over their lifetime. Let us help you optimize not only when you pay them, but how much you pay.
For decades, investors had only two choices for their taxable investments:
- Do not sell = tax deferral. Hold your positions (or positions like them, as in a Section 1031 exchange, etc.) forever, and never enjoy your own wealth, or
- Sell and pay the tax = your wealth stops compounding. The only way to enjoy your profits was to sell and pay the tax, interrupting the power of compounding.
The Power of Tax Deferral
$1m portfolio: End value over different holding periods (assumes 10% pre-tax annual return and 30% tax rate)
The graph above is an illustration of mathematical principles used to demonstrate the impact of taxes and compounding on returns. Returns and tax rates are not reflective of any actual or expected investment outcomes or tax rates. Actual results cannot be guaranteed and will vary.
SOURCE: HWM calculations (available upon request)
Neither is ideal when your goal is to build generational wealth while still enjoying your money today.
Until now, investors like you have had to accept the limitations of exchange funds, Qualified Opportunity Zone investments, complex and expensive trusts, giving your profits away, or other risky alternatives that add expense, complexity, risk, and unnecessary lockups–because there has been no other way to avoid losing meaningful portions of your wealth to taxes.
You deserve better, and now you can have it.
Enter: Ultra Tax Efficient Wealth Management®
Ultra Tax Efficient Wealth Management® (UTEWM®) is Hendershott Wealth Management’s proprietary suite of multi-layered tax reduction strategies designed to help you legally pay less tax, preserve more of your capital, and experience the freedom your wealth should provide.
Within the UTEWM® suite are core services available to (and working for!) all of our high-net-worth clients at Hendershott Wealth:
Only at HWM: UTEWM® is HWM’s proprietary, end-to-end approach to building and preserving wealth after taxes. It’s available exclusively to HWM clients. It’s designed and delivered by our fiduciary team – integrating financial planning, portfolio management, and tax operations under one umbrella. UTEWM® is a tax-aware financial plan, fully customized based on your situation and goals, that takes advantage of powerful, cutting edge, and fully vetted strategies to leave you with significantly greater long-term wealth.
In addition to traditional tax minimization services such as tax-aware investment selection, smart asset location, tax-loss harvesting, tax bracket management, and ensuring you are deferring the most tax you are legally allowed each year, HWM is offering:
- Custom Annual Tax Letter & Tax Return Review: Each year, we prepare a detailed tax letter for your CPA, summarizing tax planning actions on your behalf. Then we review your return for costly errors (like missed carryforwards or misreported gains).
- Equity Compensation & IPO Planning: From RSUs to ISOs to impending IPOs or tenders, we provide customized planning to help you minimize taxes and maximize the value of your equity events.
- Strategic application of AQR’s Flex SMA tax-aware long-short: For suitable investors with $1.25 million or more in investable assets, tax-aware long-short is a sophisticated overlay that strategically realizes investment losses and defers capital gains taxes, generating tax savings that can continue to compound for as long as the gains are deferred.
UTEWM® integrates into every part of your wealth plan to protect (and grow!) your legacy. It’s a comprehensive approach to tax efficiency, customized for your financial picture and coordinated with your team of goals-oriented, tax-minimizing CFP® professionals here at Hendershott Wealth.
Over a lifetime, these compounded tax savings can be substantial, with the potential to increase suitable investors’ long term wealth by 30-50%
Want to learn more about what tax-aware long-short strategies can do for you?
Tax-aware long-short (TALS) (we use AQR’s Flex Separately Managed Accounts) is a sophisticated long-short overlay that strategically realizes investment losses and defers capital gains taxes, generating tax savings that can continue to compound for as long as the gains are deferred.
3TALS gives you tax alpha: extra wealth created by smart tax management.
In other words, your investment portfolio can create substantial tax benefits in addition to earning market returns.
Use cases for tax-aware long-short include:
- Diversifying highly appreciated stock
- Post-IPO planning, including diversifying ISOs and NSOs
- Diversifying fully vested RSUs
- Selling your appreciated family home
- Selling a business when the proceeds are characterized as capital gains
The graphic below illustrates the hypothetical difference between approaching the diversification of a concentrated portfolio in a tax-inefficient way (no strategy) vs. using market-neutral leverage in a tax-aware long-short strategy to achieve tax alpha, without additional market exposure or risk:
Tax-aware long-short investing reliably and predictably realizes losses to offset capital gains elsewhere in your portfolio…
without sacrificing upside or adding meaningful risks.
Developed over 25 years of investment management research and experience, tax-aware long-short makes it possible to:
- Defer capital gains taxes indefinitely, so your money compounds longer
- Generate consistent tax alpha
- Manage and rebalance your portfolio
- Access your underlying funds without triggering a tax liability
- Diversify concentrated stock positions–and other appreciated assets such as real estate and businesses–while minimizing the impact of large taxable events, critical for concentrated stockholders or liquidity events
Over a lifetime these compounded tax savings can be substantial, with the potential to increase suitable investors’ long term wealth by 30-50%.
A tax-aware long-short strategy is perfect for an investor who has (or will have) substantial unrealized capital gains from assets such as employer or other highly appreciated stock, business sale proceeds, and real estate.
Consider the following hypothetical scenarios, built from real strategies and real results:
This is exactly how the approach works for our clients. By leveraging tax-aware long-short alongside other strategies in our Ultra Tax Efficient Wealth Management® suite, investors with $1.25 million or more in taxable investments can strategically minimize tax liabilities, enhance portfolio growth, and preserve more of their wealth for the future–without compromising their ability to enjoy it now.
This is the kind of measurable difference that UTEWM®, anchored by AQR’s Flex SMA, is designed to deliver–and we can’t wait to see what it can do for you.
Ready to add significant tax benefits to your personalized financial plan?
If you’ve ever felt like your CPA is looking backward while your financial plan needs to look forward, this is the solution you’re really looking for.
UTEWM® and tax-aware long-short are the bridge between your investments and your tax strategy. It’s how we help you stop paying tax bills that make you cringe and keep your hard earned money in your pocket—year after year.
If you’re ready to explore whether Ultra Tax Efficient Wealth Management® is a fit for your situation, hit the button below and fill out the form to get started.
We’ll pair you with a lead advisor for a no-obligation virtual meeting designed to help you understand your current tax drag, what strategies are available to reduce it, and how we can work together to build lasting, flexible wealth that’s aligned with your goals.
We look forward to showing you the power of Ultra Tax Efficient Wealth Management® in building your wealth for today, for all of your tomorrows, and for generations to come.
Curiosity piqued?
Read to learn more about how UTEWM® works:
A deep dive into UTEWM® and tax-aware long-short via AQR’s Flex SMA
Watch to learn more about how UTEWM® works:
What truly sets Ultra Tax Efficient Wealth Management® apart…
…is how deeply it’s embedded in our holistic planning process; one that considers not just your investments, but your values, your vision, and the life you want to create.
We believe your money should support your ability to thrive—not just in retirement, but every step of the way. That means helping you make smart, proactive decisions now so you can step into a future defined by freedom, purpose, and possibility.
We don’t just care about the numbers. We care about the future they unlock for you.
At Hendershott Wealth Management, you’re not just getting a portfolio—you’re gaining a trusted partner with decades of experience guiding clients through every season of life and the markets.
Our team brings deep tax planning expertise, evidence-based investment strategies, and a holistic approach designed to help you thrive now and in the future. We’re in this together, with a shared goal: making your financial life better, simpler, and more aligned with what matters most to you.
To strategize a plan for minimizing your tax burden without compromising on investment quality or liquidity,
Frequently Asked Questions
What is Ultra Tax Efficient Wealth Management®?
UTEWM® is Hendershott Wealth Management’s proprietary suite of financial services designed to reduce tax drag, preserve more of your wealth, and align your financial plan with forward-looking tax strategy.
Who is AQR’s Flex SMA for?
The tax-aware long-short strategy powered by Flex SMA is suitable for investors with significant taxable assets (generally $1.25M+) who want to minimize capital gains taxes on concentrated stock, business sales, real estate, or other large holdings.
Is it risky to leverage separately managed accounts?
All investing involves risk, but the strategies with the tax-aware long-short overlay are evidence-based, market-neutral, and designed to add tax efficiency without speculative trading or unnecessary lockups. As a result, the strategy is considered to be a low-risk use of leverage.
What makes Ultra Tax Efficient Wealth Management℠ different from traditional tax strategies?
Most approaches rely on either deferring taxes forever or paying them upfront. UTEWM® layers strategies—like smart asset location, equity compensation planning, ongoing tax-loss harvesting, and, for suitable investors, tax-aware long-short investing—to create flexibility, liquidity, and long-term tax efficiency.
Do I need to give up control of my portfolio to use AQR’s Flex SMA?
Investors retain title to their assets, but they can’t be traded (by anyone other than AQR), pledged or borrowed against. Unlike other tax deferral strategies, your account remains accessible. That said, Flex SMAs are not like bank accounts where investors should plan to ongoingly deposit and withdraw money. Flex SMAs are appropriate for long-term plans.
How much can UTEWM® save me?
Savings depend on your portfolio and situation, but research and hypothetical case studies suggest potential lifetime benefits of 30–50% more wealth through compounded tax savings over the long term. Results vary, and there are no guarantees.
How much will it cost me to implement the strategies in UTEWM®?
The majority of the services within our UTEWM® suite come at no additional cost to you. We offer AQR’s Flex SMA strategy without any additional costs or fees paid to HWM. You can expect to pay fees of roughly 0.6% of the account balance per year split between the custodian, Fidelity, and account manager, AQR, but the long-term incremental returns on the long-short overlay are expected to offset the fees and expenses associated with the strategy (although this depends on market conditions and cannot be guaranteed).
Do I still need my CPA if I work with Hendershott Wealth Management?
Yes. We partner with your CPA, provide an annual tax letter to guide their work, and review your returns for errors. Your CPA handles filing for the past year; we focus on forward-looking planning.
What’s the minimum investment to access UTEWM®?
The standard suite of UTEWM® services is included for all clients. Access to tax-aware long-short investing requires at least $1.25 million in taxable investments.
How do I know if this is right for me?
The best way is to schedule a complimentary, no obligation virtual call. We’ll review your tax drag, discuss strategies available to you, and explore how UTEWM® could support your financial goals.
Contact Us
Hendershott Wealth ManagementSM, LLC
11 Municipal Drive, Ste 200, Fishers, IN 46038 (primary mailing address)
2570 N. First Street, Second Floor, San Jose, CA 9513