Market Volatility & Tax-Loss Harvesting

March 10, 2022 Austin Bryan, CFP®, Wealth Manager

Market & Tax

As many of you know there has been more market volatility the last couple of weeks due to inflation fears and geopolitical events (i.e. Russia’s invasion of Ukraine).  As always, your HoganTaylor Wealth advisors are monitoring the impact on your investments.  We believe it’s crucial during times of heightened emotion to stay consistent to the investment process and financial plan we have set together. 

To quote a recent Dimensional article title Navigating Geopolitical Events: “Geopolitical events like military or economic conflicts can affect stock markets in many ways. These events are normally widely followed by investors. We believe current market prices quickly incorporate expectations about the effects of these events on economies and companies. Our investment approach centers on using information in current market prices rather than trying to outguess them. If markets stay open and continue to function normally, we generally continue investing our portfolios according to our usual process. We believe that the most effective way to mitigate the risk of unexpected events is through broad diversification and a flexible investment process. This philosophy applies to other crises, like natural disasters, social unrest, and pandemics. “

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Secondary to staying the course, this is a time when we look for opportunities to rebalance as markets continue to move as well as continue to look for ways to tax loss harvest.  Tax loss harvesting is a strategy of realizing losses on certain holdings in a taxable portfolio to offset taxable gains and regular income.  This is just another strategy to help increase returns over the long-haul, by keeping your future tax bills lower. 

As always if you have any thoughts, questions or would like to discuss further please reach out to your HoganTaylor Wealth advisor.

About HoganTaylor Wealth

HoganTaylor Wealth provides an integrated approach to investment and financial planning and is a registered investment advisor and subsidiary of HoganTaylor LLP. HoganTaylor Wealth takes its fiduciary responsibility seriously. Without commission, referral or soft-dollar arrangements, they operate on a fee-only basis to ensure everyone’s interests are aligned with those of the client.

INFORMATIONAL PURPOSE ONLY. This content is for informational purposes only. This content does not constitute professional advice and should not be relied upon by you or any third party, including to operate or promote your business, secure financing or capital in any form, obtain any regulatory or governmental approvals, or otherwise be used in connection with procuring services or other benefits from any entity. Before making any decision or taking any action, you should consult with professional advisors.

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