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Tax Loss Harvesting With ETFs: 6 Ideas To Lower Client Liabilities

By: ETFdb
Innovation across the exchange-traded universe has brought forth a host of investment strategies to mainstream investors, allowing for access to previously difficult to reach corners of the global financial market. Aside from the well-know benefits of ETFs, like ease-of-use and transparency, the structure of these investment vehicles holds several, often times overlooked, tax benefits as well. Recent volatility in the markets has likely taken a toll on investors’ portfolio; however, some declines in asset values might have a silver lining, as they present the opportunity for financial advisors and self-directed investors alike to exercise effective tax management and make prudent use of unrealized losses [see 25 Things Every Financial Advisor Should Know About ETFs]. Market downturns provide the unique opportunity for investors to take advantage of losses to lower their tax liabilities. There are potential benefits of selling a “losing” security; investors can use the unrealized losses to offset realized [...] Click here to read the original article on ETFdb.com. Related Posts: May ETF Summary: Return to Old Form iShares Launches Minimum Volatility ETFs New Emerging Markets ETF Option: HILO Debuts March ETF Stats: Another Solid Quarter December ETF Roundup: $1 Trillion And Counting
Innovation across the exchange-traded universe has brought forth a host of investment strategies to mainstream investors, allowing for access to previously difficult to reach corners of the global financial market. Aside from the well-know benefits of ETFs, like ease-of-use and transparency, the structure of these investment vehicles holds several, often times overlooked, tax benefits as well. Recent volatility in the markets has likely taken a toll on investors’ portfolio; however, some declines in asset values might have a silver lining, as they present the opportunity for financial advisors and self-directed investors alike to exercise effective tax management and make prudent use of unrealized losses [see 25 Things Every Financial Advisor Should Know About ETFs]. Market downturns provide the unique opportunity for investors to take advantage of losses to lower their tax liabilities. There are potential benefits of selling a “losing” security; investors can use the unrealized losses to offset realized [...]

Click here to read the original article on ETFdb.com.

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