This article discusses tax optimization techniques including asset location, potential adjustments for significant capital losses from tax loss harvesting and tax considerations for alternative investments.
An advanced tax strategy that enhances the potential for capital losses generated by direct indexing by adding one or more short positions.
The SECURE 2.0 Act, signed into law on December 23, 2022, has an extensive list of changes relevant to retirement planning. The following is a brief overview of some of the changes:
Tax-loss harvesting can be useful in an array of situations, but understanding when to best utilize this strategy is key. Tax-loss harvesting is the practice of selling an investment for a loss.
The first component of this approach, comprising the majority of investment dollars, is the purchase of one or more certificates of deposit. There are banks offering CDs insured by the Federal Deposit Insurance Corporation with rates of more than 2% for a 10-year term.
Typically, health savings accounts (HSAs) are used as savings accounts for medical expenses, providing tax-deductible contributions and tax-free withdrawals.