Rough Start, Smart Moves: Harvesting Losses and Buying Value
Scott Miller, Jr.
Managing Partner
The market’s volatility so far this year doesn’t feel great, but remember: every dip creates opportunities. Two of the most valuable are tax loss harvesting and buying quality closed-end funds when they trade at larger discounts, and we’ve already been executing both on our clients’ behalf.
The market’s volatility so far this year doesn’t feel great, but remember: every dip creates opportunities. Two of the most valuable are tax loss harvesting and buying quality closed-end funds when they trade at larger discounts, and we’ve already been executing both on our clients’ behalf.
What We’ve Done So Far
| Strategy | Why It Matters | How We Executed |
| Tax loss harvesting | Realized losses today can offset future gains and up to $3,000 of ordinary income per year. | We realized losses where appropriate, then reinvested the proceeds in similar positions so your allocation stays on target. Despite the market declines many clients still have little unrealized losses. |
| Discount shopping in closed-end funds | In selloffs, discounts often widen creating value for investors. | We selectively rotated into funds trading at deeper than usual discounts to lock in higher yields and potential price upside. |
Bottom line: these advantages are built into our process—no action needed on your end.
Roth Conversions: A Timely Opportunity: If the Numbers Work
Moving assets from a traditional IRA to a Roth while values are down can turn the rebound into tax free growth. A conversion makes sense only when:
- Your current bracket is lower than the one you expect later
- You have outside cash to pay the conversion tax
- The move aligns with RMD timing and estate plans
Because these factors differ for each family, we need a clear view of your tax picture before recommending next steps.
Action Needed: Send Us Your 2024 Tax Return
Please email or securely upload your 2024 return. With it we will:
- Pinpoint your marginal and effective rates
- Measure how much headroom remains in your current bracket
- Coordinate any conversion proposal with your CPA
No cost, no obligation: just actionable insight tailored to you.
