Gifting oflow-basis stock

Tax-loss harvesting

WITH YOUR INVESTMENTS Taxes are a top detractor from overall portfolio performance. Your financial advisor can help you implement strategies to make your investments more efficient and tax-smart.

The Case for Tax Management

higherpotentialreturns12%

Common Strategies

Hypothetical example for illustrative purposes only. Source: AssetMark.

For general public use.

SCENARIO 1: Tax-Managed Portfolio

Income andtax bracket

management

Emphasizing tax-favored

investment vehicles

Tax-efficientasset allocation

Effective gain/lossrecognition

Tax-managed portfolio design

Tax-Managed vs. Non-Tax-Managed Portfolios

Growth of $1M over 20 years

Tax-Managed (12%)

Non-Tax-Managed (10%)

$9,646,293

$6,727,500

Tax Smart Get

Sources1. Roberto Apelfeld, James P. Gordon, Jr., Gordon B. Fowler, Jr. Tax-Aware Equity Investing. Journal of Portfolio Management. Winter 1996.2. Rey Santodomingo, Tim Atwill, Martha Strebinger. ETFs Are Good, but Tax-Managed SMAs Are Even Better. Parametric Whitepaper. April 2017.3. James D. Peterson, Paul A. Pietranico, Mark W. Riepe, and Fran Xu. Explaining After-Tax Mutual Fund Performance. The Financial Analysts Journal.

January/February 2002.

DefinitionsS&P 500® Index is an unmanaged index that is generally considered representative of the US equity market, consisting of 500 leading companies in leading industries of the US economy (typically large cap companies) representing approximately 75% of the investable US equity market. SPDR® S&P 500® ETF seeks to track the price and yield performance of the S&P 500® Index (before expenses). SPDR is a registered mark of State Street Global Advisors.

Important InformationThe information provided here is for general informational purposes only, and not personalized investment advice. The investment strategies discussed here may not be appropriate for every investor. Opinions expressed herein are those of AssetMark and are subject to change at any time. Investors should not rely solely on this review or any other single chart, graph or information piece when making investment decisions. Investing involves risk including the potential loss of principal. There is no guarantee that a diversified portfolio will outperform a non-diversified portfolio in any given market environment. No investment strategy, such as asset allocation, can guarantee a profit or protect against loss in periods of declining values. Prior performance is no guarantee of future results. This information is not a solicitation for investment. One cannot invest directly in an index. The potential benefits of any tax strategy depends on your individual financial situation. We recommend that you consult a tax professional before deciding to engage in any tax strategy including loss harvesting. Tax-qualified accounts, such as IRAs, do not benefit from tax-efficient management. AssetMark, its affiliates and representatives do not provide tax advice and the information presented here should not be considered to be tax advice. You should consult a tax professional for information relating to your particular situation. AssetMark provides fee-based investment advisory programs. For more complete information about the various investment solutions available and the fees associated with them, please refer to the Disclosure Brochure.

AssetMark, Inc. is an investment advisor registered with the Securities and Exchange Commission.©2019 AssetMark, Inc. All rights reserved.

30003 | C32460 | 10/2019 | EXP 10/31/20

Hypothetical scenario for illustrative purposes only.Source: AssetMark Assumes annual return of 11.8% (2016). *Short-term gain at ordinary income tax rate of 39.6%. **Long-term gain at top tier capital gains rate of 23.8%.

Tax-loss harvesting canboost annual returns by

3%

3

Identify and sell stockstrading at a price

lower than the originalpurchase price

Replace sold stockswith similar securities

to maintain desiredmarket exposure

Final portfoliowith lower tax bill

Initialportfolio

Use capital losses fromstock sale to offset capitalgains generated in other

areas of the portfolio

(REPEAT)

–+

For general public use.

The Case for Tax Management (cont.)

in SPDR® S&P 500 ETF$1M

Many Opportunities for Loss Harvesting

S&P 500 Winners & Losers (1990 - 2016)2

Winners% Losers% Index Return

SCENARIO 2: Tax-Loss Harvesting — How It Works

SCENARIO 3: Short-Term vs. Long-Term Gains

Investors Will Face Losses – Make the Most of Them

Over $18,000 differencein after-tax profit, by waiting 1 day to avoidshort-term capital gains tax

Talk to your financial advisor about putting these strategies to work in your portfolio.

Investor sells at 1 year

Investor sells1 year + 1 day

$1,089,916** $1,071,272*

Winners and losers represent the percentage of stocks within the S&P 500 index that end each year with a positive return or negative return, respectively. Source: Parametric, FactSet.