Customer Log On
Home
Product Choices
Owl 401k Guide
Eagle Investor
Fox Cash Creator
Neff Custom Work
How Does It Work?
Action Alerts
Past Results
Economic Factors
Risk Management
Go Practice
Your Life Plan
Education Foundation
Administration
Website Map
|
When Is A Loss A Loss, Or Not A Complete Loss?
In a taxed account, if you make a mistake and have a loss then you can write this loss off against future gains. So a loss in a taxed account is not a complete loss. The loss becomes a tracked asset on your tax return, to be used when you have had a gain.
In your established tax deferred account, if you have a loss, it is a loss. Maybe a loss forever. There is no easy way to write it off against future gains. But, always check with a tax expert for changes in the tax laws.
We believe you should take a conservative investing approach in your tax deferred accounts. Taking higher risk usually equals to a lower win/loss percentage in investing. So, risk prone investors remember...where to take your investing risk. If you feel the need for taking risk, take the risk in your regular brokerage accounts, in the taxed accounts.
A last thought, your tax deferred account is for your retirement! Can you really afford to be taking any major risk in this portion of your investing portfolio? We do not think so!
|