How Tax Loss Harvesting Can Save You Thousands
00:00:00.000 | Tax-loss harvesting, I have done it myself.
00:00:02.500 | I think it's a neat tool.
00:00:03.840 | The sad thing is that if you have no gains
00:00:07.580 | to use them as an offset
00:00:09.160 | and you are bound by these $3,000 a year,
00:00:11.800 | some people will argue it's not really worth the hassle
00:00:14.000 | to do that.
00:00:14.920 | For me personally, because I generate some capital gains,
00:00:18.720 | so I do some options trading
00:00:20.260 | and that generates both short-term
00:00:22.260 | and long-term capital gains.
00:00:23.860 | It brings up a whole other issue.
00:00:25.480 | So for example, a lot of people now
00:00:27.180 | want to do direct indexing, right?
00:00:28.900 | So instead of buying the index fund,
00:00:30.900 | they still do the index.
00:00:32.060 | They still do the S&P 500 index,
00:00:33.640 | but they implement the S&P 500 index
00:00:35.860 | with the underlying constituents.
00:00:37.360 | And then you can do a lot more tax-loss harvesting.
00:00:39.700 | For some people with a lot of taxable gains
00:00:42.740 | that they want to offset, that is very useful.
00:00:44.620 | If you don't have a lot of taxable gains
00:00:46.620 | and the $3,000 is all you can really offset every year,
00:00:50.180 | might be a whole lot of hot air over nothing,
00:00:53.260 | but definitely for a lot of people,
00:00:54.900 | tax-loss harvesting can be super helpful.