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  IFA's Quote of the Week Feb 11 , 2008 Issue 6
 

 

"For most investors, tax loss harvesting is one of the most important ways to reduce tax liability now and in the future."




--Mark T. Hebner, President of Index Funds Advisors & author of Index Funds: The 12-Step Program for Active Investors

As tax reporting documents trickle in and investors ponder their current tax situation, it’s a good opportunity to give you some insight into a powerful tax-savings tool called tax loss harvesting. In fact, the recent market downturn provides you with an opportunity to examine your specific situation to identify whether you can save on future capital gains taxes. 

To save on future taxes, investors might consider the following strategy: