Tax-Loss Harvesting: Turning Market Volatility Into a Tax Advantage

Market volatility is uncomfortable — but for tax-savvy investors, it creates a genuine opportunity.

Tax-loss harvesting is the practice of selling securities at a loss to offset capital gains elsewhere in your portfolio.

The wash-sale rule is the critical constraint.

For high-net-worth investors, the real power of tax-loss harvesting lies in its compounding effect over time.

Direct indexing has emerged as the most powerful vehicle for systematic tax-loss harvesting.