Key Points:

  • 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.

  • The tax efficiency of your non-retirement portfolio is an important consideration in tax-smart investing.

  • 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.