There are computerized processes for financial planning for individuals
and groups whose financial portfolio would be subject to tax on certain
events. But these processes do not take into account these taxes when
optimizing investment decisions, since taxes levied on investment
outcomes, typically on income and realized capital gains, may have an
important impact on net portfolio results. This invention is a method for
transforming the usual pretax information for calculation of an efficient
frontier, unique to an investor's portfolio, in such a manner that any
portfolio on the calculated frontier is efficient after incorporating the
effect of taxes on the risk and expected return of each asset class
permitted in the investor's portfolio. This invention addresses how this
may be done and how certain facets of the process may be incorporated
into a computer program or system so as to provide convenience to the
potential user.