Rich Habits Podcast 69: This Episode Will Save You Thousands (Seriously)
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Jun 17, 2024 
The CEO of Frec.com joins the hosts to discuss direct indexing and tax loss harvesting for wealth building. They share insights on maximizing gains through investing in blue-chip art, launching products, diversifying passive income, and utilizing wealth-building tools like high-yield cash accounts and stock trading platforms.
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Understanding Capital Gains Taxes
- Capital gains tax depends on how long you hold an investment: less than a year is short-term and taxed at ordinary income rates.
- Holding investments over a year leads to lower long-term capital gains taxes, benefiting your overall returns.
Set Aside Taxes Before Tax Day
- Always set aside money to pay taxes on your profits before tax day, regardless of what happens afterward.
- Avoid spending your profits prematurely because tax obligations are based on yearly gains, not your current account value.
Tax Loss Harvesting Strategy
- Use tax loss harvesting by selling losing investments to offset gains and reduce taxes owed.
- Rebuy the investments after 30 days to maintain your portfolio and keep your money working efficiently.