This appealing strategy has pitfalls, too
Who doesn’t want to reduce their tax bill? At the end of the year, one popular tactic is tax loss harvesting, a strategy of selling stocks, mutual funds, exchange-traded funds and other investments that are worth less than what one paid for them. The idea is to use losses to offset realized capital gains on other investments. On the surface, tax loss harvesting seems attractive, but is it a good fit for the long-term investor? It depends.