According to a recent Wall Street Journal article, the value of tax-loss harvesting is quite impressive. Tax loss harvesting is basically managing long and short term gains to the investors advantage. Using someone in the 25% income tax bracket, their studies show that in a strong market, managing taxable gains and losses can add 1.1 to 1.42% to annual returns. Even more impressive, during significant downturns when the S&P is negative, this harvesting can add about 3.21% to yearly performance. So whether the market has been naughty or nice, tax management can be a gift to returns.
News & Insights
Alone With My Thoughts – 12/14/2021
According to a recent Wall Street Journal article, the value of tax-loss harvesting is quite impressive. Tax loss harvesting is basically managing long and short term gains to the investors advantage. Using someone in the 25% income tax bracket, their studies show that in a strong market, managing taxable gains and losses can add 1.1 to 1.42% to annual returns. Even more impressive, during significant downturns when the S&P is negative, this harvesting can add about 3.21% to yearly performance. So whether the market has been naughty or nice, tax management can be a gift to returns.
“You do the dreaming, we’ll do the math.”
— Leigh Baldwin
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