Tax Loss Harvesting | Turning Portfolio Pain into Planning Alpha – Pt. 2

Tax-loss harvesting (TLH) can be a useful tool for minimizing the effects of taxes, helping your clients make the most of their financial plans and portfolios. However, a delicate balance and careful planning is required to reap the benefits of tax-loss harvesting without causing unintended consequences. There are drawbacks that should be considered before executing TLH strategies or adding TLH to an account.

Tax Loss Harvesting | Turning Portfolio Pain into Planning Alpha – Pt. 1

Many investors may find themselves sitting on unrealized losses in positions that have lagged or corrected. This presents an opportunity not only to offset the current year’s capital gains, but also to rebalance portfolios to better align with client goals. Tax-loss harvesting isn’t just a way to benefit from down markets; it’s a proactive strategy that can generate measurable tax alpha* when implemented to a client’s strategy.