4 Benefits of Tax-Loss Harvesting

If you have heard of tax-loss harvesting and are wondering if it is right for you, talk to your personally dedicated CFS* Financial Advisor to discuss your options.

A simple definition of tax-loss harvesting is when you sell select securities at a loss to offset your capital gains from other investments. Depending on your unique situation and financial goals, tax-loss harvesting can provide several possible benefits, including:

• Saving on taxes – helping reduce the amount you may owe on capital gains taxes.
• Growing your portfolio – if you reinvest your tax savings, you have the opportunity to potentially increase the value your portfolio over time.
• Managing your exposure to risk – by selling assets that are expensive or risky, tax-loss harvesting can help you do so with a potential tax savings.
• Mitigating the impact of market volatility – selling certain assets at a loss triggered by volatility may possibly result in a tax savings.

Understandably, tax-loss harvesting is not for everyone and there are limits to how much you can write off each year, so review your situation with your dedicated CFS* Financial Advisor before moving forward.

Getting started is as easy as scheduling an appointment with your CFS* Financial Advisor at your local Community First Branch.

Reach out to learn more!

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