Having a rough year in your portfolio? Here's a move worth considering: liquidate your holdings, lock in those losses—then flip right back in if you still believe in what you own. Sounds counterintuitive, but there's real logic here. Those realized losses become ammunition for your taxes down the road, potentially offsetting gains when your next big winner shows up. It's not about timing the market perfectly; it's about playing smarter with the L's you take today. Your future wins will thank you.
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MerkleDreamer
· 12-20 06:55
Sell at the bottom and buy back? This tax arbitrage sounds good, but in practice, it always feels like a trap.
Having a rough year in your portfolio? Here's a move worth considering: liquidate your holdings, lock in those losses—then flip right back in if you still believe in what you own. Sounds counterintuitive, but there's real logic here. Those realized losses become ammunition for your taxes down the road, potentially offsetting gains when your next big winner shows up. It's not about timing the market perfectly; it's about playing smarter with the L's you take today. Your future wins will thank you.