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Because liquidating / selling your shares is a taxable event. If you purchased a simple ETF to begin with, your tax burden would have been lower.
by nicd 2y ago
Because liquidating / selling your shares is a taxable event. If you purchased a simple ETF to begin with, your tax burden would have been lower.
- gdudeman 2y agoRight, the whole point of these tricks is to compound a continuously larger amount. If you liquidate, you pay taxes (even more in one year with tax loss harvesting) and begin compounding from a lower starting point going forward.