Denver Office

1999 Broadway

Suite 1415
Denver, CO 80202

Tax Loss Harvesting and Rebalancing

April 09, 2020
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Hi everyone – Peter here….again!  I know we are all getting a little worn out from all these COVID-19 emails, but in this historic time in our world, I want to make sure that I can communicate with all of you in a timely and efficient manner.

I want to share with you some strategies that we will be implementing in our client portfolios over the next few weeks that can help ease the future pain of this pandemic.

Even though no one likes to see losses in their portfolios, it actually creates an opportunity for what we refer to as Tax Loss Harvesting.  I’m sure some of you have heard this term before. This is a of process where we look at individual positions and sell those positions to achieve a realized tax loss. This tax loss can be used in the future against any gains that might be realized. Although tax loss harvesting doesn’t benefit you today it’ll likely benefit you in the future when portfolios start to recover.

Another strategy we will employ is rebalancing. Rebalancing your portfolio is one of the keys to successful investing overtime. It means adjusting your holdings – that is buying and selling certain stocks, bonds, funds or other securities – to maintain your pre-established asset allocations. In this case rebalancing would be selling bonds and buying stocks. While this may sound scary, it is an opportunity to buy into equities at a deeply discounted price while still preserving your cash and risk tolerance.

Our family, friends and loved ones are more important to us than anything in this world and we know you feel the same way.  We are here to help!  If any of your family or friends are concerned or have questions about their portfolio’s, investments or retirement plans we are happy to talk with them.  If they are important to you, they are important to us. During times like these some people have nowhere to turn. We’d like to make sure they have someone they can call upon to help with some questions that might have surfaced as a result of this crisis. This can be done with a simple phone call – no social distancing required 😊!

We are so appreciative of you as our friends, our clients and our business associates, especially during times like these. If any of you would like to just chat and connect with someone, we are here for you, we care about you and we will all get through this together.

Thank you,

Peter F Tedstrom, CFP® 

Founder & Chief Advisor

P.S. IF YOU DO NOT WANT US TO USE THESE STRATEGIES IN YOUR PORTFOLIO PLEASE CALL US IN THE NEXT 48 HOURS.

No strategy assures success or protects against loss. Investing involves risks including
possible loss of principal