Almost never, will you hear someone say: I wish I could pay more taxes. Today, we are going to break down this bias and try to explain why sometimes, it's a better choice to pay a little bit more tax in the short term. Tax bias is everywhere. For example, we often see some advisors holding onto a stock just because they don’t want to trigger a tax event, or selling a stock prematurely because “you are in a low tax bracket this year” or "it's not doing so hot this year." However, as Nathaniel said, we firmly believe that if you buy an investment, you should understand the fundamentals of the business, and you sell an investment because it has reached its fair value. Considering tax consequences is not a bad thing, but it’s not why you invest! Dan talked about the pros and cons of popular "tax-efficient" choices like stock options, 1031 exchange in real estate, retirement accounts, etc. Nathaniel explained why it makes no sense in most cases to do so-called "tax-loss harvesting." As always, read the fine print, understand that taxes are only a small portion of your overall financial picture, and don't sacrifice your long-term life goals for a short-term "tax win!"
