Tax Loss Harvesting and Direct Indexing
17m
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Invest for Success
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It's hard to believe we've turned the calendar to November, but as the end of the year approaches, it's time to start thinking about year-end taxes. Today, Jeff Scheider from Mooney Lyons briefly explains two strategies that can be advantageous to investors.
The first is tax loss harvesting. This is the idea that if you sell certain securities at a capital loss, you can use those losses to offset capital gains in your taxes. Jeff walks us through the process, including who and which investments are eligible, and what the restrictions are, including the Wash Rules. We also look at pros and cons for this strategy.
Next, we cover direct indexing - what is it and how does it work? Instead of buying an index through an ETF like Vanguard or eShares, for example, you buy the holding in the index directly, making sure you weight your investments by sector. You may not have all 500 stocks in the S&P for example, but you can have a good representation. And tax loss harvesting can work hand in hand with direct indexing.
Of course, these strategies aren't for everyone, and we look at what criteria should be evaluated in using them. The most important thing is to talk to an expert in the field. That's where the team at Mooney Lyons comes in.
Mooney Lyons is currently offering a complimentary review of your investment portfolio. There's no cost or obligation. You can find out more by reaching out to the team at https://mooneylyons.com/
or by calling 847-382-2600. You can also send an email to [email protected].
Securities offered through Triad Advisors, LLC. Member FINRA/SIPC. Advisory Services offered through Triad Hybrid Solutions LLC, a registered investment advisor. Mooney Lyons Financial Advisors and Triad Advisors, LLC are not affiliated.
The episode Tax Loss Harvesting and Direct Indexing from the podcast Invest for Success has a duration of
17:26. It was first published