Greetings all!
The holiday season is upon us, and we at Bona Fide are preparing to stay busy for the rest of the year, helping our clients succeed in all aspects of their lives. This newsletter will provide you with some context surrounding tax-loss harvesting, and what that means when investing.
Read
The ultimate goal when you start investing is never to lose money, but this is part of having a “well-diversified” portfolio and embracing the reality that sometimes stocks will perform well, and sometimes they won’t. Tax-loss harvesting is an investing strategy that helps turn investment losses into tax offsets. You can find more about tax-loss harvesting from Forbes article on tax loss harvesting and improving your investment returns. More helpful tips and rules about tax-loss harvesting can be found on The White Coat Investor website.
Listen
Taylor Schulte with The Stay Wealthy Retirement Show spotlights what tax-loss harvesting is, how it works, and why it has become a popular strategy. He breaks it down into three steps: sell a security that has lost money, use that realized loss to offset taxes that you owe on another investment that made money or ordinary income, and then potentially investing into something else. This 20 minute listen also gives a few things to know about the wash sale rule. Take a listen!
Watch
This video breaks down specific examples of what tax-loss harvesting would look like in different scenarios. If you’d like some thorough visual examples, then watch Jake Broe’s video where he details the different ways to strategically use tax-loss harvesting to come out on top with your return.