Some investing services claim that regular tax loss harvesting can improve after tax returns by up to 1.8% per year.

We've long said that tax loss harvesting is the most compelling reason to use a robo advisor.

Tax loss harvesting can lower your tax bill and boost your after tax returns with no extra effort on your part.

And it's a task perfectly suited to software.

While it's certainly compelling, more objective academic research that takes the full cycle

of an investment into consideration suggests that the benefit is much less. In fact, many

researchers agree that tax loss harvesting might only boost after tax returns

by about 0.3% or 30 basis points per year.

And that 30 basis points can get washed away pretty quickly by trading fees, changes in tax

rates, and underperformance during the wash sale period.

So who is tax loss harvesting for?

Who is really in a position to benefit?

And maybe, more importantly, who won't benefit from this tax strategy?

That's what we're tackling today on the show.

Welcome to the Stay Welfy Podcast. I'm your host, Taylor Schulte, and today I'm continuing

with our series on tax loss harvesting. Here in part two, I'm sharing who should consider tax

loss harvesting, who should stay away from it, and the top three things that can increase

the value of this tax strategy. I'm also sharing

situations where tax loss harvesting can backfire and do more harm than good. To grab the links

and resources mentioned today, just head over to you staywealthy.com forward slash 166.

To answer who can benefit from tax loss harvesting, let's just quickly revisit one of the problems with this strategy, a problem that I referenced in last week's episode that causes a lot of

investors to pause and wonder if the juice is really worth the squeeze here.

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