So, what exactly is tax-loss harvesting? It’s a tax-saving strategy that involves selling investments that have declined in value to offset capital gains from investments that have increased in value. By doing so, you can reduce the taxable income generated from your investment portfolio and potentially save money come tax time. For example, let's say you invested $10,000 in stock A and it has declined in value to $7,000. At the same time, you invested $10,000 in stock B and it has gone up to $15,000. By selling stock A, you can offset the capital gains from stock B and lower your taxable income. 📝Free Retirement Vision Workbook https://propath.ck.page/workbook 🔔 Subscribe for all things retirement, investment, tax, & estate planning https://www.youtube.com/thatchertaylor?sub_confirmation=1 ✅ If you enjoyed this video, check out our Retirement Planning Playlist: https://youtube.com/playlist?list=PL7A5bFh5NxnUcoMyFHpO09fy3f1b2TdCu ✅ I've also broken down some important information regarding Social Security here: https://youtube.com/playlist?list=PL7A5bFh5NxnVRx5wzD4AOLz7KyigadFqv 🆓 If you want to UNWIND your wealth, download our Retirement MEGA Pack, which includes a flowchart, checklist, and EBook all about unwinding wealth and evaluating your investments: https://propath.ck.page/retirement-mega-pack Let’s connect 🙋♂️: ✔️ Twitter https://twitter.com/ThatchTaylor ✔️ LinkedIn https://www.linkedin.com/in/thatcher-taylor-cfp/ ✔️ Facebook https://www.facebook.com/propathfinancial ✔️ Instagram https://www.instagram.com/dadbodfinancial/ Check us out on your favorite 🔊Podcast Platform 🔊: Spotify, Apple, or Google Podcast; search WEALTH PROGRAMMED and give us a FOLLOW! Are you over age 50 and need retirement help? 🤝 Schedule a free consultation http://www.propathfinancial.com/schedule-an-appointment Not ready yet? No problem... Sign up for our Monthly Newsletter here 👉 https://propath.ck.page/5952bc75eb Finance tools I find helpful and use routinely: 🧮https://www.calculator.net/ 📊https://www.taxformcalculator.com/ 🔎https://www.portfoliovisualizer.com/ It’s important to note that you cannot simply purchase the same investment right away. The IRS has what’s known as the “wash-sale rule” which prohibits individuals from repurchasing the same or similar security within 30 days. If you violate this rule, the IRS will disallow the loss for tax purposes. Now, you may be thinking, “What if I believe stock A will go up in value again in the future?” Well, that’s okay, you can purchase the stock again after the 30-day wash-sale rule period has passed. It’s also important to consider the tax implications of your investment portfolio as a whole, not just individual investments. By working with a financial advisor, you can determine the best course of action for your specific investment goals and tax situation. One more thing to keep in mind is that tax-loss harvesting is just one aspect of overall tax planning. It’s important to review your investments regularly and consider other tax-saving strategies such as making contributions to a tax-advantaged retirement account, such as an IRA or 401(k), or utilizing tax-loss harvesting in conjunction with other strategies for maximum benefits. In conclusion, tax-loss harvesting can be a valuable tool for investors looking to reduce their taxable income. By offsetting capital gains with losses, you can potentially save money come tax time. However, it’s important to be aware of the wash-sale rule, consider the tax implications of your entire investment portfolio, and seek professional advice before implementing this strategy. Thanks for watching and don't forget to hit the subscribe button for more great content. Until next time, happy investing! DISCLAIMER: The information provided in these videos is only to be considered helpful hints and education. Nothing said or shown in any of these videos is to be misconstrued as specific tax, legal or investment advice. Consult with your tax, legal or investment professional before acting on anything you see in these videos.