Investors advised to consider tax-loss harvesting amid bond losses

Brant Wong: Brant Wong is head of retirement solutions at Principal Asset Management, part of Principal Financial Group, with nearly three decades of experience in retirement investment platforms and product strategy. He advises on aligning portfolios with individual retirement timelines and risk tolerances. In the news context, he notes that younger investors may better withstand bond market fluctuations compared to those nearing retirement when considering harvesting moves. Joseph Gotelli: Joseph Gotelli is a vice president and senior portfolio manager at American Century Investments specializing in municipal and fixed-income strategies. He frequently analyzes yield environments, relative value in bonds, and tax-efficient trading approaches. His input in the news underscores that selling losing bond positions for tax purposes does not require exiting fixed income, as investors can transition to suitable alternatives. Marianela Collado: Marianela Collado is CEO, senior wealth advisor, and a certified financial planner and public accountant at Tobias Financial Advisors, where she focuses on tax-aware wealth planning and client education. She regularly contributes to discussions on market opportunities and tax strategies. In this news, she emphasizes reviewing taxable bond holdings now for tax-loss harvesting to offset capital gains and refine allocations before year-end. Principal Financial Group: Principal Financial Group is a global financial services company with expertise in retirement planning, asset management, and income solutions through its Principal Asset Management arm. Brant Wong leads retirement solutions there, drawing on extensive experience in retirement platforms and investor needs across different life stages. The firm connects to the news via advice on how investors' time horizons influence decisions around bond volatility and potential portfolio reassessment. Tobias Financial Advisors: Tobias Financial Advisors is a registered investment advisor firm based in Plantation, Florida, specializing in wealth management, tax planning, and financial advisory services for individuals and business owners. Marianela Collado serves as its CEO and senior wealth advisor, frequently sharing insights on tax-efficient strategies. In the context of the news, the firm highlights opportunities for clients to realize bond losses through tax-loss harvesting in taxable accounts to offset gains elsewhere. American Century Investments: American Century Investments is a global asset manager offering a range of fixed-income products, including municipal bond ETFs and funds, with a focus on active portfolio management. Joseph Gotelli, its vice president and senior portfolio manager, provides expertise on bond market dynamics and tax strategies. The firm is relevant to the news through its commentary on using tax-loss harvesting in the current high-yield environment to reposition fixed-income holdings without exiting the market entirely. Bond Market: Elevated Treasury yields have created unrealized losses for holders of bonds purchased at lower yields, opening potential planning opportunities in taxable accounts. Tax Planning: Tax-loss harvesting involves selling investments at a loss to offset capital gains, with unused losses generally available to carry forward for future use. Portfolio Review: Regular assessment of fixed-income positions allows investors to pursue tax efficiency while considering factors like time horizon, income needs, and diversification.