2024 Q4 Chesser Report

Paula R. Chesser, CSA
Senior Vice President & Senior Investment Consultant

Hi there!

The beautiful oranges, reds, and yellows in the trees remind us about the splendor of Fall. Family time for hayrides, Halloween, and to take a few moments just to breathe in some fresh Fall air!

Entering fourth quarter of the year is always a great time to think about a Tax-loss harvesting strategy. Tax-loss harvesting is a tax strategy that involves selling nonprofitable investments at a loss in order to offset or reduce capital gains taxes incurred through the sale of investments for a profit. Basically, you harvest investments to sell at a loss, then use that loss to lower or even eliminate the taxes you have to pay on gains you made during the year. This strategy only applies to investments held in taxable accounts and you have until December 31st to implement the strategy for 2024. If you would like to explore this topic further, I am happy to have the conversation!

Baird's Cash Sweep Program provides the opportunity to earn income on available cash balances held in Baird Accounts. By using multiple participating banks, Baird's Bank Sweep Feature seeks to provide aggregate FDIC insurance protection for cash balances of up to $2,500,000 for most account types or $5,000,000 for joint accounts with two or more owners. For more information on Baird's Cash Sweep Program, please visit Cash Sweeps or give me a jingle for further discussion.

Looking forward to our next conversation. 😊

Warm Regards,

Paula

Advanced Planning Thought Leadership

Planning Moves to Consider Before Year-End

Perhaps more than any other year, 2024 may feel...

Take Advantage of Tax-Loss Harvesting

There can be tax benefits to selling securities that...

9 Facts About
Retirement

What does Retirement mean to you?

Ask Paula

Dear Paula,

I was at a wonderful dinner with friends and the topic of tax loss harvesting came up. I tried to follow along but didn't catch the first part of the conversation so I didn't quite get the whole story. My friend was explaining how he had used this strategy to help him lower his overall federal income taxes. I am glad he brought the topic up because I have some rather large realized gains this year and wonder if tax loss harvesting may be a strategy that would benefit me.

Would you have any information you could share regarding tax loss harvesting so I can get a better understanding of how the strategy works and who might best benefit from implementing such?

Thank you,

Mike

Hi Mike,

If you want to minimize next year's tax obligations, optimizing your finances this year is a good place to start.

To determine if portfolio maintenance strategies like tax-loss harvesting can work for you, it's helpful to understand how sales of investments are taxed. That's why, I've attached the article above "Taking Advantage of Tax-Loss Harvesting" describing capital gains taxation, benefits of tax loss harvesting, scenarios, as well as, the Wash Sale Rule.

I believe you will find the article very educational. Let me know how I may assist further. I am happy to help.

Warm Regards,
Paula

Meet the Team

Paula R Chesser, CSA
Sr Vice President & Sr Investment Consultant
pchesser@rwbaird.com

Mary Ellen Polosky

Client Assistant

mpolosky@rwbaird.com

Team Paula’s successful wealth management practice assists Very High-Net-Worth Yacht Owners, Successful Business Owners, and Multi-Generational Families in navigating 5 key areas: 1) wealth preservation, 2) tax mitigation, 3) taking care of heirs, 4) protecting assets, and 5) analyzing charitable options. Professional licenses include Series 7, 66 and life & long-term care insurance.

Team Updates

Our Fall Celebration was a cool crisp evening, with great company, scrumptuous food, tantilizing drinks and heaters to keep us warm!