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Stock impact report

Robo-advisers may be overpromising investors on the benefits of 'tax-loss harvesting’ [CNBC]

Alphabet Inc. - Class C Capital Stock (GOOG) 
Last alphabet inc. - class c capital stock earnings: 4/28 04:02 pm Check Earnings Report
US:NASDAQ Investor Relations: abc.xyz/investor
Company Research Source: CNBC
Leading automated financial advisers — often calledrobo-advisers — such as Wealthfront and Betterment tout daily tax-loss harvesting as a way to significantly increase your returns. But independent research suggests the technique has less effect than claimed and may be more a gimmick than a true advantage for investors. Tax-loss harvesting explained Tax-loss harvesting is a perfectly legal technique for reducing your tax liability . If you've sold an investment at a loss this year, you can use that to offset capital gains elsewhere in your portfolio. Or, if you didn't book any gains, you can use the loss to offset your ordinary income — declaring the maximum-allowed capital loss of $3,000 could mean a savings of several hundred dollars on your taxes. But an investor who harvests a loss today might be raising her taxes in the future. Because loss harvesting only defers taxes — it doesn't eliminate them. More from NerdWallet: 4 things that could make you a targe Show less Read more
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