No investor enjoys seeing losses in their portfolio. Yet, how you manage losses often matters as much as how you generate gains. The most disciplined investors—and their advisors—know that losses can be powerful strategic tools when used wisely.
Tax-loss harvesting takes realized investment losses and uses them to offset taxable gains, lowering overall tax liability. Put simply, it transforms short-term setbacks into long-term advantage. As one of my mentors used to put it, a loss can be an economic asset—if managed properly.
