How Tax-Loss Harvesting Works for Retail Investors
Losses in the market can prove profitable in many cases such as when you buy low to later sell high. It’s not just the losses of others that you can benefit from, however. Tax-loss harvesting is a strategy to help investors turn their reversal into an advantage. This technique was once primarily used by wealthy individuals and financial professionals. It’s now accessible to retail investors thanks to user-friendly investment platforms and robo-advisors.
Tax-loss harvesting involves selling investments that have dropped in value to offset capital gains taxes on other investments that have appreciated.
“Capital losses have a few benefits,” David Tenerelli, a certified financial planner at Strategic Financial Planning in Plano,…
