December 7, 2018

As a Los Angeles financial advisor, I can confirm I’ve never spoke with anyone that gets excited about losing money from their investments. However, markets don’t go straight up. Recognizing losses from tax-loss harvesting creates tax benefits that can help your overall financial picture. In the short-term, market volatility produces opportunities to recognize investment losses. A diversified portfolio won’t have as many opportunities to recognize investment losses with a long-term time horizon. How do investors maintain their overall portfolio while recognizing losses?