‘Tis the Season for Year-End Planning: Tip #2

Miss the first item on our year-end planning checklist? See it here.

It’s safe to say that 2017 has been an interesting ride, one that may have a few more twists, turns and surprises in store — especially when it comes to tax reform.

While we wait for Congress to iron out differences between the Senate and House versions of the Tax Cuts and Jobs Act, it’s important to practice proactive planning for the year ahead. Of course, it’s still a little early to offer firm determinations about how pending reforms may impact the tax outlook (we’ll provide a more in-depth update over the coming weeks). But there is a simple strategy you can consider today to stockpile greater savings — and it starts with taking a hard look at your portfolio.

Tip #2: Employ Tax-Loss Harvesting

If you realized a large capital gain this year, you may consider tax-loss harvesting.

Tax-loss harvesting is an investment strategy that involves selling an investment at a loss and buying a similar, substitute investment simultaneously. By using this strategy, you can “lock in” an otherwise unrealized paper loss to offset gains on your tax return, but the overall composition of your investment portfolio essentially remains the same.

Hypothetical and for illustrative purposes only. All investments are subject to ongoing risk of loss and may have materially different levels of volatility. There is no guarantee that a replacement investment in any tax-loss harvesting scenario will perform better or equally to the original investment.

Through tax-loss harvesting, you can help reduce your capital gains tax liability and possibly achieve a greater after-tax investment return. Contact your investment and tax advisors to look for opportunities to use this strategy before year-end, and discover if tax-loss harvesting is a viable option for your investment plan.

Want to Learn More?

Tax-loss harvesting can help you reduce your current (or future) tax bill and ride out the market roller coaster with confidence. But there are other tactics you can take to enhance tax efficiency and foster long-term investment growth.

Check out this segment of our OneBite Webinar series to discover more strategies that can help you achieve next-level tax efficiency, today.


Hewins Financial Advisors, LLC d/b/a Wipfli Hewins Investment Advisors, LLC (“Hewins”) is an investment advisor registered with the U.S. Securities and Exchange Commission (SEC) under the Investment Advisers Act of 1940. Hewins is a proud affiliate of Wipfli LLP. Information pertaining to Hewins’ advisory operations, services and fees is set forth in Hewins’ current Form ADV Part 2A brochure, copies of which are available upon request at no cost or at www.adviserinfo.sec.gov. The standard information provided in this blog is for general purposes only and should not be construed as, or used as a substitute for, financial, investment or other professional advice. If you have questions regarding your financial situation, you should consult your financial planner, investment advisor, attorney or other professional. Hewins does not provide tax, accounting or legal services.
OneBite Editorial Staff
OneBite Editorial Staff

OneBite® is a Top 50 Financial Advisor Blog powered by Wipfli Financial Advisors. Founded in 2011, the digital magazine is dedicated to providing intelligent, in-depth coverage and analysis of the top financial and economic issues facing investors today.

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‘Tis the Season for Year-End Planning: Tip #2

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