barb,
<<I don't personally engage in tax loss selling as I don't believe that the tax tail should wag the investment decision dog.>>
Tax loss selling is great for taking the losses this year, and maintaining your position on stocks you plan on holding for the run term. For example, I started buying LU at 74-1/2 and more later at 68. I bought way way too early, and my timing sucks. With LU at 63, I could buy the same amount I'm holding now, and sell my earlier position 31 days later (wash rule), and take my loss on my earlier position. If I don't need the tax lost this year, then it carries forward offsetting future gains.
Two good tax strategy tax loss selling is to 1. sell your dogs and walk away. 2. Buy solid companies that you already own, that have gone down substantially, and then sell the original position (gauranteing the loss) before the year ends.
Note, the timing could be to buy the fallen longs in Oct (when the mutuals are selling), and sell the losing long (original position) in Nov before the December selling begins.
<<But I have engaged in buying of tax loss candidates for the so called January effect the last two years. The results were impressive enough that i will do it again this year.>>
chester
Ihave heard of this, but have never participated. Toss out some ideas before the year ends.
chester |
