Sorry, you need to enable JavaScript to visit this website.
Skip to main content
Personal Strategy®

Tax-loss harvesting

The portfolio management method known as tax-loss harvesting allows you to sell an investment at a loss to offset gains you’ve realized and reduce your overall tax burden by reducing your net capital gains. It’s particularly beneficial for offsetting short-term capital gains, which are taxed at the federal income tax rate and at a higher rate than long-term capital gains.

Tax-loss harvesting is one of the critical tax-optimization strategies we use as part of your Personal Strategy™. Because taxes can significantly reduce your portfolio return, we aim to optimize your portfolio for tax purposes.

Personal Strategy

Tax-loss harvesting is part of a three-pronged approach that also includes asset location and tax efficiency:


First, we strategically place investments in their most tax-efficient account types. This strategy is ideal for investors with both taxable and tax-advantaged retirement accounts in their portfolios.


Then we employ tax-loss harvesting, through which we intentionally sell securities at a loss to turn an unrealized loss into a realized loss. Not only can this strategy help offset any realized capital gains you have, but it can also help create a capital loss deduction of up to $3,000 (IRS limit, subject to change).


Finally, we build your portfolio using individual stocks and tax-efficient ETFs rather than mutual funds to help maximize tax efficiency.