A Season For Tax Management

It is that time of the year again. No, I don’t mean football season or the turning of the leaves… What I mean is that it is time to start working on tax management. October is usually the month when we begin reviewing our taxable accounts with a specific focus on tax opportunities.

We don’t give tax advice nor do accounting work, but we do impact the tax returns of our clients with every investment decision I make. We also focus on minimizing and deferring taxes whenever possible because this can have an enormous impact on both wealth creation and wealth stability for any long-term investor.

So what can we do? Well, let’s start with tax-loss harvesting. By selling a position at a loss we can book that loss today and move into a new investment. The new investment could be very similar to the piece sold at a loss. Realizing this loss allows us to consider a few options:

1. Offset any other positions that sold for gains.