As a fiduciary financial advisor in Nashville, Holland Capital helps professionals who moved here from a state with an income tax rebuild the taxable side of their plan: how the brokerage account is invested, when gains are realized and how much cash to keep. Clients here meet with us in person at a Regus office on West End Avenue, and by video or phone the rest of the time.
A new state. The same brokerage account. A different tax picture.
About 39% of Nashville residents were born in a different U.S. state. About 48% of adults 25 and older hold a bachelor’s degree or higher.
You may have built your taxable investments while living under your old state’s tax rules. Tennessee does not tax wages, and it no longer taxes interest or dividends. Federal tax still applies. That makes the taxable account worth a fresh look, with federal rules as the main guide. It also helps to know whether the person advising you is a fiduciary and how they are paid.
What the Move Changed, and What It Did Not
Tennessee has no individual income tax. Its old Hall tax on interest and dividends was fully repealed starting January 1, 2021.
So interest and dividends from your brokerage account are no longer taxed by the state. The federal tax on that income is the same as before. The move can remove a layer of state tax, but the federal bill remains.
When to Realize Gains
If you held off selling because of your old state’s tax, some of that reason may no longer apply. We look at each position: what you paid, what it is worth now, how long you have held it and the federal tax a sale would create. Then we compare what to sell, what to keep and what to hold longer. Our guide to capital gains tax planning explains the federal rules.
Gains from the year you moved may still belong on your old state’s return. Your CPA can confirm which dates fall where.
RETIREMENT ENGINEERING™
The Order Matters
Five retirement decisions and why timing matters.
Cash, Brokerage and 401(k) as One Plan
We set a cash reserve first, sized to your spending and how steady your income is. Then we decide which investments belong in the brokerage account and which belong in the 401(k) or IRA. That choice is called asset location.
Through our investment management, both sides follow the same plan, and we rebalance them together.
How We Work with Clients in Nashville
Holland Capital Management is an independent registered investment adviser and a fiduciary. M. Chad Holland, CFA, CFP® works directly with clients and is responsible for the planning and advice.
Bring your latest brokerage and 401(k) statements, cost basis records if you have them, last year’s federal and state returns and the date you became a Tennessee resident.
We give you a written plan that lists what to hold in each account and which gains, if any, to take this year.
The first conversation is free. If there is work worth doing after that, we will define the scope and cost before you decide whether to move forward.
Our offices are in Charlotte, North Carolina and Winter Park, Florida. We work with clients in Nashville primarily by video or phone. When an in-person meeting makes sense, we meet by appointment at the Regus center at 3200 West End Avenue, Suite 500.
For clients whose investments we manage, accounts are held directly at Charles Schwab in the client’s own name. Holland Capital manages the investments but does not take custody of client assets. If a client ever needs in-person assistance from Schwab, the closest branch is in Nashville at 4012-B Hillsboro Pike.
We work with clients throughout Tennessee. You can see the other Tennessee communities we serve here.
Our what we do page explains how a planning engagement works.
RETIREMENT ENGINEERING™
The Order Matters
Five retirement decisions and why timing matters.
Frequently Asked Questions
How Is Holland Capital Paid?
We offer financial planning on a fixed-fee basis, subject to the scope of the engagement. Investment management is offered on a fee basis, generally calculated as a percentage of the assets we manage. When providing financial planning and investment advisory services, we act as a fiduciary. Holland Capital Management may also receive commissions when clients buy insurance through the firm. Those commissions create a conflict of interest, which we disclose in our Form ADV.
What Does a Fiduciary Financial Advisor Do After a Move to Nashville?
Holland Capital acts as a fiduciary when providing financial planning and investment advice. After a move, that means the advice on what to sell and what to keep comes from your plan, not from a reason to trade.
Our fee rises when assets come under our management, and you hear that from us before you decide.
Where Do Nashville Clients Meet with Us?
At the Regus center at 3200 West End Avenue, by appointment.
Video calls work well for most reviews.
Photo: Daniel Schwen / Wikimedia Commons / CC BY-SA 4.0, cropped.
