Because income taxes can substantially reduce portfolio returns, we manage portfolios with great attention to tax consequences.  Consistent with a client’s goals and risk tolerance, we seek to maximize after tax returns.  This is promoted by 1) allocating highly taxed securities to tax deferred or tax free accounts; 2) minimizing portfolio turnover, thus minimizing the realization of capital gains; and 3) matching capital gains with capital losses.  The concern for taxes applies to mutual fund selection as well.