By Dr. Jim Dahle, WCI Founder

When it comes to investing, small optimizations can make a big difference. For example, if you had a $100,000 portfolio, boosting your returns by just 0.1% over 30 years would mean earning an extra $8,221 in returns. Tax-loss harvesting in your taxable brokerage account (if, for instance, you are with Vanguard, Fidelity, or Schwab) is one way to optimize your investments. It’s an investing/tax reduction strategy that relies on selling losing positions to take advantage of a tax deduction. That means saving money today, giving you the chance to invest even more in the market.

Today, let’s talk about how to tax-loss harvest at Vanguard, something that could be a good idea for you given the current volatility of the market. It might NOT be a good idea for you, though. And there are certainly plenty of ways to screw it up.

Keep reading this article on The White Coat Investor.