The views expressed in these posts are those of the authors and are current only through the date stated. These views are subject to change at any time based upon market or other conditions, and Eaton Vance disclaims any responsibility to update such views. These views may not be relied upon as investment advice and, because investment decisions for Eaton Vance are based on many factors, may not be relied upon as an indication of trading intent on behalf of any Eaton Vance fund. The discussion herein is general in nature and is provided for informational purposes only. There is no guarantee as to its accuracy or completeness. Past performance is no guarantee of future results.


Topic Category
The article below is presented as a single post. Click here to view all posts.

By Holly SwanExecutive Director, Advisor Institute

Waiting until year end to help clients offset capital gains with tax-loss harvesting can be time consuming and may not be the most efficient approach from a market-timing perspective. What if, instead of waiting to year end, you discussed the benefits of a systematic approach to tax-loss harvesting with clients now?

The primary benefit of a systematic approach would be a reduction in your clients' current year tax bills so they can keep and re-invest more of what they earn from their investments. After all, the longer a portfolio stays invested, the more time it has to grow and compound. When repeated in a systematic way, year after year, tax-loss harvesting can further compound this benefit while potentially accumulating losses that can be saved and used at a future date for large or unexpected gain recognition events.

Another less-discussed benefit of systematic tax-loss harvesting is that it can help reduce emotional investing. This can be particularly important during times of economic volatility. By automating the process, you remove the temptation for both you and your clients to make knee-jerk decisions based on market fluctuations. Instead, they can stay disciplined and focused on long-term investment goals. As a bonus, the tax savings generated by harvested losses can provide a silver lining to market downturns.

Bottom line: Consider adopting a systematic approach to tax-loss harvesting now so you can help clients maximize their after-tax outcomes for the 2023 tax year.