Highpace Financial Services
Wealth Transition & Compounding Analysis
Client:
Date:
Lump Sum Tax
$0
Managed Tax
$0
Tax Savings
$0
Wealth Adv.
$0
| Year | Beg. Balance | Divestment | Shield | Tax Paid | Shadow Risk | End Value |
|---|
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1. How Lump Sum is Calculated
Immediate tax cost of exiting the entire position in a single tax year.
Tax = (Gain × 23.8%) + (Gain - Exemption) × State%2. Managed Summed Liability
Total of all taxes paid annually across the transition period.
Σ (Yearly Gain - DI Shield) × Tax Rate3. Understanding Tax Alpha
Hard-dollar savings generated through active tax-lot management.
Alpha = [Lump Sum Tax] - [Managed Tax]4. Wealth Advantage
Total benefit of Tax Alpha + Compounded Growth on deferred capital.
Shadow Risk: Unrealized tax liability remaining on shares.