What the experts say

Harvest time for losses; Stop looking for bottom; Refuge from student debt

Harvest time for losses

Around this time of year, investors usually start thinking about “harvesting losses” from taxable accounts to offset gains they’ve made elsewhere in the market, said Bill Bischoff in SmartMoney. Of course, this year most investors don’t have many capital gains to offset. “No matter.” Selling your biggest losers is still a “smart year-end move.” Focus on unloading stocks that you just plain don’t want to keep. This will free up cash to put in “more promising shares”—and the losses you’ve booked can actually be carried over to future years. “Say you sell a bunch of dogs this year, and wind up with a $75,000 capital loss carryover into 2009. You can use that loss carryover to shelter up to $75,000 of gains next year and beyond.” This may be of particular value should capital gains rates go up, as many expect.

Subscribe to The Week

Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

SUBSCRIBE & SAVE
https://cdn.mos.cms.futurecdn.net/flexiimages/jacafc5zvs1692883516.jpg

Sign up for The Week's Free Newsletters

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

Sign up
To continue reading this article...
Continue reading this article and get limited website access each month.
Get unlimited website access, exclusive newsletters plus much more.
Cancel or pause at any time.
Already a subscriber to The Week?
Not sure which email you used for your subscription? Contact us