How to use the market to lower your taxes

This is how the market helps you lower your taxes

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Let me start with a quick update.


After just over a week of struggling, the bank I used as one of my brokers, finally managed to open a Japanese yen account. With my online broker it took three mouse clicks.

And this morning I sold my first Japanese company keeping the proceeds in Yen. I will let you know how this worked out in terms of costs.


Happy to hold Yen

I am happy to hold Yen at the moment as I'm looking at buying a few other quality undervalued Japanese companies, mainly the ones we recommend in the newsletter’s Crash Portfolio.

Yes, I eat our own dog food!


Remember to keep your taxes low

This week, as I went through my research sources, I received a timely reminder to make the most of the current market decline and do tax loss harvesting. Tax loss harvesting is just a fancy word for selling loss making investments to offset the loss against gains from other profitable transactions to lower your overall tax paid.

This is something I have been doing step wise the past few months.

If you would like to do this, please check with your tax advisor as there may be specific requirements where you are a tax payer.


In the article Don’t Just Sit There…Tax Loss Harvest O’Shaughnessy Asset Management says they have:

“… added more than 2% in after-tax return from this activity in 2022 and could see additional opportunities as a result of this year’s volatility.”


“For investors who have the infrastructure and ability to harvest these losses, our research suggests they can add between 50 (0.5%) and 100 bps (1%) a year to after-tax returns.”


1% after tax is s LOT

One percent may not sound like a lot but over the long term this makes a HUGE difference to your overall returns.

Remember this is after tax!

I do not know about you, but taxes are by far my biggest investment expense!


Helping you lower taxes to increase returns analyst


PS I know markets are still uncertain BUT have you already started building your buy list? If not, why not sign up today and start now.

PPS If you want to do it yourself, look at the criteria we use to find the highest quality cheap companies for the Crash Portfolio

PPPS It is so easy to forget and put things off why not sign up right now?