Key Points:
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Market selloffs can actually create an opportunity to enhance long-term portfolio objectives. One of the most important concepts in portfolio management is tax-smart investing.
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The tax efficiency of your non-retirement portfolio is an important consideration in tax-smart investing.
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Tax-loss harvesting and tax-bracket management are not mutually exclusive. Together, they can reduce the tax drag on your non-retirement portfolio.
An excerpt:
Tax-loss harvesting and tax-bracket management are not mutually exclusive. Together, they can reduce the tax drag on your non-retirement portfolio, thus allowing more of your money to participate in long-term investing. Both strategies can be implemented over time and should be revisited annually, and during market selloffs, to help you implement a tax-smart portfolio.
See When It Comes to Investing, It’s Not Just How Much You Make, It’s What You Keep After Taxes on CNBC.com.