How to Reduce Your Tax Bill with Tax-Loss Harvesting

Now that we’re in the final innings of 2021, it’s a good time to assess how your investments are performing and how they’ll impact your taxes. Your stock portfolio may no longer be allocated the way you intended it to be or you may have pent-up earnings and/or losses in specific holdings. In either case, you may want to consider tax-loss harvesting, a technique used to help rebalance stock portfolios and reduce tax bills. Today, we’ll talk about how best to apply tax-loss harvesting and when to not do it at all.