Patent ID: 7668773

Claim:
An apparatus allowing for tax-optimized, managed investment portfolios, comprising: a database server storing an investor account database comprising account data for a plurality of financial portfolios wherein the assets of each financial portfolio have been previously allocated to according to at least one investment style; a processing server having stored thereon computer-executable data pre-processor software configured to receive (i) historical transactions associated with each financial portfolio, and (ii) proposed trades comprising adjustments to a plurality of existing positions held in each financial portfolio based on the at least one investment style; and a computer-executable portfolio optimizer module stored and operating on the server configured to optimize after-tax returns for each financial portfolio aggregated across all assets in each portfolio, factoring in risk, return, short term capital gains, short term capital losses, long term capital gains and long term capital losses associated with execution of each of the plurality of possible trades, the investment styles associated with each asset, and the historical transactions associated with each financial portfolio.