Tax loss harvesting is a strategy that uses investment losses to create tax savings. The idea is to purposely sell investments that have gone down in value so that you lose money on your investments in order to save on your taxes. It only makes sense in a few circumstances.
Tax loss harvesting is generally the right strategy for your portfolio if:
- Your annual income is above $100,000
- You don't plan on making a large withdrawal in the next 12 months
- You're invested in a taxable account
It's a little complicated so you may want to read up on our Investing 101 page. If you're not sure if tax loss harvesting is the right strategy for your portfolio, get in touch at firstname.lastname@example.org and one of our experienced portfolio managers will help you figure it out.