Details Are Part of Our Difference
Podcast Episode – Meir Statman
With the Recent Events in Ukraine, Should I Make Changes to My Portfolio?
Embracing the Evidence at Anheuser-Busch – Mid 1980s
529 Best Practices
A Piece We Love
In a recent WSJ piece, Jason Zweig discusses two things to do when the stock market gets crazy. The article and Zweig’s advice are worth your time (and the tips should sound familiar).
What’s more, Zweig highlights some long view thoughts from recent podcast guest, Hal Hershfield.
“Our distant future selves feel like different people from who we are now,” says Hal Hershfield, a behavioral scientist at the University of California, Los Angeles, who studies how time affects people’s decisions. “It can become especially difficult to keep those distant selves in mind when there’s so many emotions in the present—in the form of temptation or fear.”
If you haven’t already, listen here to the podcast episode with Hal Hershfield.
Podcast Episode – Jason Gay of The Wall Street Journal
Name a writer who consistently makes you laugh. Hard to do? Listen to this episode to hear from one of Matt Hall’s favorite writers, Jason Gay. Jason is the sports columnist for the WSJ. To us, Jason is so much more than a sportswriter – remarkable for skillfully being humorous, candid, and poignant, often at the same time. Click here to listen to the episode on Apple.
“Typically, harvests happen seasonally. Strawberries ripen in the spring, corn is eye-high by the Fourth of July, those grapes get stomped in the fall, and chestnuts roast on winter fires.
Tax-loss harvesting is different. Those familiar with the strategy mistakenly assume that losses are best harvested at year-end when taxes are top of mind. In reality, tax-loss harvests can happen whenever market conditions and your best interests warrant it.”
From a 2016 post we did on tax-loss harvesting.
Unlike many advisors and do-it-yourself investors, we are on the lookout for tax-loss harvesting opportunities throughout the year. Many people (if they harvest at all) only harvest losses once per year, usually at the last minute in late December. Not us, not you if you’re a Hill Investment Group client. Remember the market decline in March 2020? If your advisor waited until December to harvest your losses, they were likely wiped away. 2020 is a perfect example of why, at HIG, we are opportunistic when it comes to harvest time.
The big question folks have debated is how much all this work is worth? How do we quantify the benefit to you? The Wall Street Journal caught our attention with Derek Horstmeyer’s report claiming the value to be more than 1%. The estimates go even higher if your tax rate is at the top end. If their estimates are somewhere in the ballpark, harvesting looks like a sound strategy year-round with the potential to show you some real money.
You can read about the study here.