Inside Look

How Does WiseHarvesting Work?

It sounds insane to talk about an investment loss as an “opportunity.” But that’s what’s awesome about WiseHarvesting.

When the market gives you lemons, make tax deductions.

Here at WiseBanyan, we’re all about investing for the long-term. So typically, when your assets experience short term dips in value, we recommend sitting tight.

But what if you could not only make money when the stock market goes up, but also benefit when it goes down? What if there was an opportunity to maximize your money by taking advantage of barely noticeable daily losses?

Good news: there is with WiseHarvesting! Here’s how it works.

When You “Realize” a Loss, Look Forward to a Gain

You already know that when your WiseBanyan portfolio loses value, withdrawing your funds won’t get you anywhere. However, when a security loses value you have the opportunity to “realize” that loss (i.e. sell the security) and replace it with an extremely similar one.

We know – it sounds insane to talk about an investment loss as an “opportunity.” But that’s what’s awesome about WiseHarvesting. By “realizing” your loss you get to:

  1. Maintain a similar portfolio allocation
  2. Claim a tax deduction.

Same present situation, less future taxes for you!

WiseHarvesting automates the process of finding these opportunities and keeping your investment allocation on track.

One thing to note: the types of losses WiseHarvesting catches are generally small ones you probably wouldn’t notice on a day-to-day basis. However, the sum of the taxes saved on these small losses can be shockingly high. Tax-loss harvesting used to be so tedious it was reserved for those who were willing to shell out big bucks. However, with the technology of WiseHarvesting, this service is available to everyone!

Bottom Line: Negatives Into Positives

We can’t always turn a bad situation into a good one, but with WiseHarvesting, we can take advantage of small losses to give you tax benefits.

P.S. – want to get really nerdy about WiseHarvesting? Read our whitepaper!

Photo by Lukas Budimaier on Unsplash

Aliza Kellerman Aliza Kellerman is the Manager of Content Strategy at WiseBanyan. When she's not writing about the life and times of the IRA, she's hanging out with her pug.