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Month: January 2025

What is a Tax-Advantaged Account?

Brookline, NH Resident Looks to Understand This Frequently Used Term

A tax-advantaged account refers to any type of investment or savings account that is either exempt from taxes, tax-deferred, or offers some other type of tax savings unique to the type of account. The way these accounts work vary significantly, but all will offer some type of tax advantage. Some of the most common include retirement plans, education plans such as a 529, and health plans like a Health Savings Account (HSA).

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What is Tax Loss Harvesting?

Amherst, NH Resident Looks for Ways to Reduce Capital Gains Tax

Tax loss harvesting is an effective strategy for investing that you can use all year long in an effort to reduce the amount of capital gains taxes owed on your earnings. This practice is offsetting capital gains with capital losses and can make a big difference in the amount of taxes owed each quarter from the sale of your investments. Not all investments are going to perform as well as you like. When you sell one for a profit, while also selling an under-performing investment at a loss, this will help to balance the taxes you owe in capital gains.

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