Ken Fisher’s Tax-Loss Harvesting Tips

Fisher Investments’ founder, Executive Chairman and Co-Chief Investment Officer Ken Fisher believes now is a good time for investors to consider tax-loss harvesting in taxable investment accounts, a practice generally done at year-end since taxes are done on a calendar year basis. Tax-loss harvesting is a way of minimizing your tax burden in taxable investment accounts by selling some stocks currently trading at a loss (relative to your original purchase price) and using those losses to offset realized capital gains on appreciated stocks you’ve sold or may sell in the future.

A key reason Ken says you should consider harvesting losses sooner than year end is because if you wait until year-end, many other investors are doing the same thing. The result is everyone likely ends up selling the same stocks—the worst performers for the year. This can add artificial downward pressure on those stocks, which can thereafter act as a loaded spring in January when everyone has completed the process, potentially diminishing the benefits.

Ken notes those who choose to harvest loses usually have two options to replace the stock they sold: Wait 30 days to rebuy it—to avoid the IRS “wash-sale” rule—or find a replacement stock with similar attributes. Ken says if done properly, tax-loss harvesting can be an effective way to minimize your tax bill.

For more of Ken Fisher’s thoughts on the markets, visit us at https://www.fisherinvestments.com/en-....

You can also connect with us on:

Facebook - Facebook: FisherInvestments      
Twitter - Twitter: fisherinvest
LinkedIn - LinkedIn: fisher-investments

You can also follow Ken Fisher here:

Facebook - Facebook: KenFisher.FisherInvestments
Twitter - Twitter: KennethLFisher
LinkedIn - LinkedIn: ken-fisher
Instagram - Instagram: kenfisher_fisherinvestments

Investing in securities involves a risk of loss. Past performance is never a guarantee of future returns. Investing in foreign stock markets involves additional risks, such as the risk of currency fluctuations. The foregoing constitutes the general views of Fisher Investments and should not be regarded as personalized investment advice. Nothing herein is intended to be a recommendation. The opinions expressed are subject to change without notice.

The contents of this video should not be construed as tax advice. Please contact your tax professional.

• #education
• #ytccon