Wealth Management Solution with After-Tax Performance Reporting

Project Solution

A comprehensive wealth management system integrated with Addepar, delivering after-tax performance reports and helping amplify returns for clients — supporting precision-driven strategies and tailored insights for financial advisory.

Overview

The Client works in the FinTech industry and sought to build an aggregator engine that provides after-tax performance reports to its clients. INNERLUXES built the solution and integrated it with Addepar (a wealth management platform), created a web platform for the Client's business customers, and delivered an admin portal to manage all customers.

A wealth management system integrates financial planning, investment management, tax planning, estate planning, and other services to optimize financial outcomes and help clients achieve long-term goals. After-tax performance reports are financial statements that show a portfolio's investment returns after accounting for taxes, giving investors a more accurate view of the actual returns they've earned after the impact of taxes on gains.

The Approach

The project aimed to build a system to evaluate the total asset and liability gain of investments. INNERLUXES designed the wealth management system to manage all long-term gains, short-term gains, realized and unrealized gains, and losses. INNERLUXES retrieved all information from Addepar and worked with that data — establishing customer data, performing the calculations, and designing the balance sheet and profit-and-loss statement based on Addepar data. A web application was created to capture data from the Addepar API.

The solution shows data after tax submission with suggestions based on historical Addepar data, and reports are designed at three levels: Customer Level, Manager Level, and Trust Level. The system encompasses key data and considerations including:

• Estate taxation, federal estate taxes, and state death taxes.
• Income tax carryforwards and charitable gift carryforwards.
• Estimated investment portfolio fees.
• Exchange-traded funds & mutual funds, separate account managers, hedge funds & private-equity limited partnerships, direct real estate, and collectibles.
• Advisory / consulting fees.
• Dollar goals-based analysis (personal, beneficiaries, charitable, government).

The Impact

• A wealth management platform that focuses on after-tax dollar returns versus an investable benchmark (such as an index fund or index ETF) and a projection benchmark.
• Calculations fed back into Addepar's engine to produce industry-unique after-tax percentage returns.
• Multi-level reporting (customer, manager, trust) for comprehensive advisory insight.
• A web platform and admin portal that centralize customer management for the firm's business customers.

Technologies and Tools

ASP.NET Core, C#.NET, Entity Framework, LINQ, MS SQL Server 2017, MVC architecture, Addepar integration.