Tax Loss Harvesting Myths Debunked: What You Need to Know Now | AMA #4 with Jesse - E95

Jesse is solo, answering your questions! Kate, a government worker with $650,000 in IRAs, is wondering how she can best rebalance her portfolio - and when. Dan seeks clarity on bonds' role despite recent poor returns, learning they offer portfolio stability and mitigate market volatility, critical for risk-averse investors. Peter asks about Social Security timing, highlighting the trade-off between early claiming's investment growth potential versus the guaranteed, low risk returns of delayed benefits, with traditional advice favoring security. Lucas, a young investor with a taxable brokerage account, asks about key considerations to include when setting up a dividend reinvestment plan. Lastly, Chris wonders how to judge between three potential advisors. If you’d like a question in a future AMA, send Jesse a message!

 

Key Takeaways:

• How to mitigate your risk by diversification.

• Why a 10% “sandbox” could be the right thing for your portfolio.

• Should you employ a time based or an allocation based  rebalancing strategy.

• When you should or should not use bonds.

• What is “transfer-on-death”?

• How to choose between financial advisors.

 

Key Timestamps:

(00:00) - Review of the Week

(01:15) - AMA: Portfolio Rebalancing

(10:45) - AMA: Understanding Bond Performance

(20:29) - The Role of Bonds in Inflation

(25:59) - AMA: Social Security and Investment Strategy

(29:37) - Understanding Risk-Adjusted Returns

(30:32) - Comparing Social Security to Risk-Free Investments

(32:37) - Potential Downsides of Early Social Security Collection

(37:39) - Lucas's Taxable Brokerage Account Strategy

(50:38) - Chris's Financial Advisor Dilemma

 

Key Topics Discussed:

The Best Interest, Jesse Cramer, Rochester New York, financial planner, financial advisor, wealth management, retirement planning, tax planning, personal finance, Tax Loss Harvesting Myths, Debunked: What You Need to Know Now, The Simple 3-Step Formula to Avoid Excess Taxes in Your Investments, Is Splitting Your Portfolio Between Advisors a Smart Move? Maximize Your Capital Gains: Proven Tax Strategies for 2024, How to Avoid IRS Fines: The Urgent 90% Rule You Need to Know

 

Mentions:

“Why Can’t I Take Social Security Early and Invest It?”

 https://bestinterest.blog/why-cant-i-take-social-security-early-and-invest-it/ 

“I Wouldn’t Know Where to Start” – 16 Questions to Ask A Financial Advisor https://bestinterest.blog/financial-advisor-questions/ 

 

More of The Best Interest:

Check out the Best Interest Blog at bestinterest.blog

Contact me at jesse@bestinterest.blog

 

The Best Interest Podcast is a personal podcast meant for educational and entertainment. It should not be taken as financial advice, and is not prescriptive of your financial situation.