Turning the Bear Market into a Goldilocks Moment

Jul 06

Asset prices are significantly down from recent highs. The bear market is here, and we have no idea how long it will be before the bulls are back on top. While looking at retirement or other investment account statements may not be the gratifying experience it was in 2021, there are things investors can do to take advantage of the drop in asset prices. These moves can help set your portfolio up to recover and reduce tax liability. In some cases, the savings on taxes may have knock-on effects that make up for the temporary decrease in value.

Reap the Tax-Loss Harvest

The current market presents an opportunity to sell depreciated assets and use the loss to offset the capital gains taxes on assets that have appreciated since. This is particularly effective in offsetting capital gains on equities that you own at a low basis or have held for some time. And... ...