Maybe it is the shorter days, the holidays approaching, or simply realizing that another year has somehow disappeared, but November always seems to get me thinking.
In the financial world, year-end isn’t just a date on the calendar. It can also be a useful checkpoint. Before the champagne corks pop and 2027 arrives, there are a few financial planning items worth having on the radar.
Make Lemonade From a Few Lemons
Nobody likes looking at an investment that’s worth less than what they paid for it, but occasionally there can be a silver lining.
Tax-loss harvesting involves selling an investment at a loss and potentially using that loss to offset realized capital gains elsewhere in a taxable portfolio. If losses exceed gains, federal tax rules may permit a limited amount to offset ordinary income, with unused losses generally carried forward.
There are important details, including the wash-sale rule, which can affect the tax treatment when substantially identical securities are purchased within the applicable period. So this isn’t simply a matter of selling something on December 31 and buying it right back. But a portfolio review before year-end can identify positions where an investment loss might also have some tax-planning value.
Past performance does not guarantee future results. The S&P 500 is an unmanaged index and cannot be invested directly. This commentary is provided for informational and educational purposes only and is not intended as investment advice or a recommendation to buy or sell any security. Investments involve risk, including the possible loss of principal.