The Beauty of Tax Loss Harvesting

Tax loss harvesting is just about the coolest thing in investing

If you invest in stocks, you are going to have positions that move against you.

When that happens, you can realize the loss and replace it with a similar exposure.

Now you have a tax asset that you can use or carry forward indefinitely!

And public stocks are great for this because of how volatile they can be and how much dispersion there is from one stock to another.

Which means there are always opportunities to harvest losses, even in up markets.

Whether you are doing it through:

• ETFs

• Direct indexing with individual stocks

• Or tax-aware long/short strategies

You can systematically realize tax savings year after year.

Over time, those savings compound just like returns do.

Back to blog

Leave a comment

Please note, comments need to be approved before they are published.