Looking to make your portfolio more tax-efficient?
Tax-loss harvesting might be worth a look.
It’s a strategy where you sell investments that have dropped in value to offset gains elsewhere – potentially lowering your tax bill and boosting long-term returns.
2025 could be a good year to consider it.
Market volatility has created more chances to realize losses, and upcoming tax law changes may make timing especially important.
But this strategy isn’t for everyone.
It works best if you have taxable accounts, capital gains, and a long-term outlook.
And you’ll need to follow IRS rules, like the wash-sale rule, which limits when you can buy back the same, or substantially identical, investment.
Sometimes, holding onto an investment and letting it grow over time may outweigh the benefit of lowering your capital gains tax this year.
Before making moves, talk to your financial advisor and tax professional to decide if tax-loss harvesting is right for you.
This article was written by Edward Jones for use by your local Edward Jones Financial Advisor John Dickerson, and Hawes Dickerson. Members SIPC.
