How Much Do You Know About Tax-Loss Harvesting Banner

How Much Do You Know About Tax-Loss Harvesting?


Last week I wrote about the reasons I think tax-loss harvesting isn’t right for every investor —how its recent popularity has led it to become an overhyped, oversold shortcut to the really difficult work it takes to do it well. And how, contrary to our experience over the past 27 years, many in the industry assume that loss harvesting is a one-size-fits-all solution.

It got me thinking about other things the investment community assumes about tax-loss harvesting but may not really understand. Parametric spends a good deal of time helping advisors and their clients with loss harvesting, so I thought it would be useful to also devote some energy to lore harvesting—gathering some of the things we hear from advisors and investors from time to time and testing them against what we know to be true.

The results appear in the interactive quiz below. I encourage you to give it a try. If any of the answers surprise you, that’s OK—they may surprise many in the industry who are new to tax-loss harvesting or aren’t fully sure how it works. My hope is that, armed with more knowledge, we can all make the right decisions for clients—decisions based not on lore but on good, sound investment science.

Potential Parametric solution

Parametric has more than 25 years of experience providing tax-managed investing solutions to advisors and their clients. One of the primary drivers of tax efficiency in a tax-managed Parametric Custom Core ® account comes from tax-loss harvesting.

Brian Langstraat

Brian Langstraat, CFA, Chief Executive Officer

Brian is responsible for Parametric’s firmwide strategy and organizational development. Since joining Parametric in 1990, Brian has held positions in portfolio management, product development, portfolio administration, marketing, and client service. In 2014 he was elected to the Eaton Vance Corp. board of directors. He earned a BA in economics and sociology from the University of Washington.

The views expressed in these posts are those of the authors and are current only through the date stated. These views are subject to change at any time based upon market or other conditions, and Parametric and its affiliates disclaim any responsibility to update such views. These views may not be relied upon as investment advice and, because investment decisions for Parametric are based on many factors, may not be relied upon as an indication of trading intent on behalf of any Parametric strategy. The discussion herein is general in nature and is provided for informational purposes only. There is no guarantee as to its accuracy or completeness. Past performance is no guarantee of future results. All investments are subject to the risk of loss.