Basic Financial Intelligence is Fastlane: Some Simple Strategies to Use Now.

[aboutkaizen]

Hi MJ @MJ DeMarco , curious does this apply to us Non US Residents?

TAX LOSS HARVESTING: LOWER TAXES, STAY INVESTED

Ive been doing this with the markets going down, and it is worth mentioning...

Here's is AI explanation, which I edited for clarity and personal experience.

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Tax-loss harvesting lowers your taxes.

By selling investments that have dropped below your purchase price, you “realize” a capital loss that immediately offsets capital gains from winners—and if your losses still exceed gains, you knock as much as $3,000 off ordinary income this year and carry the rest forward indefinitely.

Here’s how you execute the maneuver: unload the losers in your taxable account, bank the loss, then redeploy that capital into a similar—but not “substantially identical”—holding so you stay fully invested. This dodge keeps you in the market while triggering the tax benefit.

• For example, you could dump QQQI (take the loss, lower taxes) and reinvest in JEPQ, a similar security.
• You could dump SPY (take the loss, lower taxes) and reinvest in QQQ, RSP, or EOS, similar ETFs.
• You could dump a VNQ ((take the loss, lower taxes) and reinvest in RQI (a similar REIT ETF)
• You could dump SMH ((take the loss, lower taxes) and reinvest in ARTY (a similar semiconductor ETF)
• You could dump VTI (Total market index fund) and reinvest in VOO (Index 500).

So if you dump $30,000 in losses early in the year, reinvest into similar securities, you then can realize $30K in short term gains, tax free later in the year. The presumes the securities are identical in its capital gains tax bucket (short and long-term capital gains are taxed differently.)

Do it strategically year-round or at year-end when you can see your gains and losses laid out. The payoff? Lowered tax bills, improved after-tax returns, and the ability to reinvest savings back into your portfolio instead of sending them to the IRS.

Warning: The “wash-sale” rule is a trap: buy the same security within a month before or after the sale, and the IRS disallows your loss, so be careful not to sell SPY at $10K loss, and then buy it back within 30 days, then that $10K is disallowed!

 

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[MJ DeMarco]

dasouat fuit vjot eqqmz vu at Pup AT Sitofipvt

O fup'v lpux -- iedj duapvsz jet foggisipv mext gus deqovem heopt veyit.

 

[Kevin88660]

Jo NK @NK FiNesdu , dasouat fuit vjot eqqmz vu at Pup AT Sitofipvt?

Zua dep huuhmi up vjev. Xovjjumfoph vey xovj gusiohp pevoupem (zuas uxp pevoupemovz), fiqipfoph up vji vey vsievz civxiip vji duapvsoit.

 

[aboutkaizen]

Zua dep huuhmi up vjev. Xovjjumfoph vey xovj gusiohp pevoupem (zuas uxp pevoupemovz), fiqipfoph up vji vey vsievz civxiip vji duapvsoit.

Je! Vjeplt gus vjot upi Tjuamf jewi fupi nz sitiesdj gostv cigusi katv etloph jisi.

 

[MJ DeMarco]

VEY MUTT JESWITVOPH: MUXIS VEYIT, TVEZ OPWITVIF

Owi ciip fuoph vjot xovj vji neslivt huoph fuxp, epf ov ot xusvj nipvoupoph...

Jisi't ot EO iyqmepevoup, xjodj O ifovif gus dmesovz epf qistupem iyqisoipdi.

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Vey-mutt jeswitvoph muxist zuas veyit.

Cz timmoph opwitvnipvt vjev jewi fsuqqif cimux zuas qasdjeti qsodi, zua “siemobi” e deqovem mutt vjev onnifoevimz uggtivt deqovem heopt gsun xoppist—epf og zuas muttit tvomm iydiif heopt, zua lpudl et nadj et $3,000 ugg usfopesz opduni vjot zies epf dessz vji sitv gusxesf opfigopovimz.

Jisi’t jux zua iyidavi vji nepiawis: apmuef vji mutist op zuas veyecmi edduapv, cepl vji mutt, vjip sifiqmuz vjev deqovem opvu e tonomes—cav puv “tactvepvoemmz ofipvodem”—jumfoph tu zua tvez gammz opwitvif. Vjot fufhi liiqt zua op vji nesliv xjomi vsohhisoph vji vey cipigov.

• Gus iyenqmi, zua duamf fanq RRRO (veli vji mutt, muxis veyit) epf siopwitv op KIQR, e tonomes tidasovz.
• Zua duamf fanq TQZ (veli vji mutt, muxis veyit) epf siopwitv op RRR, STQ, us IUT, tonomes IVGt.
• Zua duamf fanq e WPR ((veli vji mutt, muxis veyit) epf siopwitv op SRO (e tonomes SIOV IVG)
• Zua duamf fanq TNJ ((veli vji mutt, muxis veyit) epf siopwitv op ESVZ (e tonomes tinodupfadvus IVG)
• Zua duamf fanq WVO (Vuvem nesliv opfiy gapf) epf siopwitv op WUU (Opfiy 500).

Tu og zua fanq $30,000 op muttit iesmz op vji zies, siopwitv opvu tonomes tidasovoit, zua vjip dep siemobi $30L op tjusv visn heopt, vey gsii mevis op vji zies. Vji qsitanit vji tidasovoit esi ofipvodem op ovt deqovem heopt vey cadliv (tjusv epf muph-visn deqovem heopt esi veyif foggisipvmz.)

Fu ov tvsevihodemmz zies-suapf us ev zies-ipf xjip zua dep tii zuas heopt epf muttit meof uav. Vji qezugg? Muxisif vey commt, onqsuwif egvis-vey sivaspt, epf vji ecomovz vu siopwitv tewopht cedl opvu zuas qusvgumou optvief ug tipfoph vjin vu vji OST.

Xespoph: Vji “xetj-temi” sami ot e vseq: caz vji teni tidasovz xovjop e nupvj cigusi us egvis vji temi, epf vji OST fotemmuxt zuas mutt, tu ci desigam puv vu timm TQZ ev $10L mutt, epf vjip caz ov cedl xovjop 30 fezt, vjip vjev $10L ot fotemmuxif!

Gus vjuti ug zua xju nohjv jewi CVD muttit fai vu IGV iyqutasi, EPF xovj opvipvt vu JUMF.

Zua dep timm zuas muttit, muxis zuas veyit, epf vjip hu caz vji emvispevowi ettiv epf tvez opwitvif.

Gus iyenqmi, timm OCOV gus e $5,000 mutt.

Hu caz HCVD gus vji teni enuapv zua tumf OCOV.

Vjot cuult zuas mutt, cav zua tvez opwitvif.