Tax-Loss Harvesting | Offsetting Future Gains

Jonathan Satovsky
CFP®, ChFC®, CIMA®, CPWA®

Jonathan M Satovsky discusses how in periods of high volatility, we should ride the wave by leveraging Tax-Loss Harvesting to create tax credits that may otherwise be ignored.

Good afternoon. This is Jonathan Satovsky of Satovsky Asset Management. August of 2019 with a video blog update on how to take advantage of the waves of summer and the increased volatility through a concept called tax loss harvesting.

So, it’s not lost on me that some people like to jump into the waves and some people like to get out when the waves are very high.

And whether it’s the waves in the ocean at the beach or whether it’s the waves of volatility, increased volatility that generally happens in the month of August and financial markets.

I’m going to teach you how to take advantage of those situations today, through this simple example.

We’ll take investor A who has a million dollars invested and sees the investment decline to $900,000 and then rebound to a million dollars.

Experiencing a rollercoaster but not much financial difference.

Investor B on the other hand, has the same million dollars invested and as the $900,000 declines, decides to sell their securities and buy like-kind securities, that basically inures a tax credit. And this tax credit or $100,000 loss that is created, depending on someone’s tax bracket will inure to somewhere between $15,000-$50,000 of credits to be used either this year or in subsequent years to offset future gains, or to directly offset someone’s income taxes.

So, as you ponder this example, I hope you enjoy your Labor Day weekend.

Enjoy the high seasons of high waves and high volatility and realize there’s always opportunity to take advantage of the adventure.

Have a wonderful holiday.

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Video Recorded August 27th, 2019
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Disclosures

This blog post is not intended to be, nor should it be construed or used as, an offer to sell, or a solicitation or offer to buy any securities or interests in any strategy offered by Satovsky Asset Management, LLC (“SAM”). SAM is a registered investment advisor with the Securities and Exchange Commission – for more information see www.adviserinfo.sec.gov. Please remember that different types of investments involve varying degrees of risk, and that past performance is not indicative of future results. Therefore, it should not be assumed that future performance of any specific investment or investment strategy (including the strategies recommended or undertaken by SAM) will be profitable. Market index information shown herein is included to show relative market performance for the periods indicated and not as standards of comparison. The market volatility, liquidity and other characteristics of SAM’s portfolio composition are materially different from the securities listed on public market indices. Market indata. Opinions are as of date of video and are subject to change. A copy of SAM’s current written disclosure statement discussing our advisory services and fees continues to remain available for your review upon request. SAM undertakes no duty to update information presented herein.

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