Reality Radio for a really great future.

We're talking real money.

It's Friday, so welcome to another Talking Real Money Q&Aathon with me, Don McDonald,

and your questions.

Today's questions all came in from Talking RealMoney.com. So you recorded them

on the website, TalkingRealMoney.com, clicked on the contact form, pushed on the little

microphone button and spoke into your computer mic, making for some pretty good quality stuff.

So let's get started with today's first question, shall we?

Hi, guys.

This is Gabe from California.

My question is about tax loss harvesting.

I have a taxable brokerage account

to which I have no goals for.

I was thinking of selling the losses and putting the proceeds on a Roth IRA. Is this possible? And what are your thoughts about it? Thank you.

Of course, this is absolutely possible. It's fine. Because remember, a Roth IRA is not an investment.

A Roth IRA is a place where you keep your investments. It's the bowl in which your investments sit.

Just think of it as a fruit bowl. And the fruit in the bowl are all your different

investments. So you're going to sell some fruit from your brokerage account bowl, netting that

$6,000 that you need to fund the Roth IRA. And then you're going to take that $6,000 and put it in

the Roth IRA bowl or put some new fruit that you're going to buy in the Roth IRA

bowl. So yeah, you can absolutely do that. That is not a problem at all. And you get a tax loss

for this year that you can use to offset capital gains or even income. Thanks for the question. I really appreciate it.

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