3 ms·
An important note on tax loss harvesting: it only defers taxes. If you'll be in a lower tax bracket in the future, that can be good; but if you'll be in a highe
by jpp 12y ago
An important note on tax loss harvesting: it only defers taxes. If you'll be in a lower tax bracket in the future, that can be good; but if you'll be in a higher tax bracket when you need the money (eg house down payment), tax loss harvesting will actually cost you money, so beware.
- ssanders82 12y agoThis can be balanced against the fact that you get to invest and compound that deferred tax until you do end up paying it, possibly several years later. So instead of multiplying your account by .65 every year (assuming 35% tax rate), you only multiply it once, at the end.