Why Tax Optimization Is the New Alpha in Wealth Management with Scott Smith

Scott Smith is the Senior Director of Advice Relationships at Cerulli Associates, where he leverages deep research and analysis to define challenges and deliver solutions across the wealth management landscape. Known for his clear-eyed insights, Scott studies market trends, advisor behavior, and platform innovation to help firms navigate an increasingly complex industry.

This week, Jack talks with Scott about his latest research on U.S. managed accounts and why tax optimization has emerged as the top priority for firms, surpassing even portfolio construction. They dive into strategies like tax-loss harvesting, asset location, and tax-smart withdrawals, exploring both the progress being made and the challenges that remain. From compliance and legacy systems to advisor adoption and third-party solutions, Scott highlights what firms must do to make tax-smart investing accessible, effective, and essential for client success.

In this episode:

(00:00) - Intro

(01:56) - Cerulli’s latest research on managed accounts

(04:29) - Surprising findings from the study

(05:46) – Why asset location has seen little progress