Tax-Loss Harvesting
November 14, 2024
The numbers behind finance and taxes can be as beneficial as they are confusing. Sometimes they do both at once. In fact, it is possible for your own loss to come full-circle and act as a gain. Markets have generally trended upward recently. However, bouts of volatility could easily mean that some of your investments have gained value while others have dwindled.
Realizing any gains from an investment can come with capital gains tax. However, selling other investment stakes for a net loss works to negate your total gains. This lowers the taxes owed on a profitable sale.
This process is known as Tax-Loss Harvesting1. It is a commonly used tool that takes advantage of managing the timing of realizing gains or losses to mitigate the tax obligation for portfolio owners. By utilizing the experience and knowledge of financial professionals, you determine the what, why, and when of managing individual items in your investment portfolio. You avoid extra taxes while maintaining the levels of risk and balance that are best aligned with your long-term goals.
No matter how in tune you are with your finances, it is always great to have a helping hand from a professional. Contact us with any questions you may have so that you are certain about your financial strategies.