Here’s how the wealthy turn their losses into tax savings.

12 Dec 2025 · 1 min

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Dan Novaes explains tax loss harvesting: selling investments at a loss to offset taxable gains elsewhere, reducing (or in some cases eliminating) a tax bill. He recommends timing these transactions near year-end (e.g., sell on Dec 31 and buy a similar asset after the new year) while avoiding immediate repurchase of the same asset; the tactic is presented as a legal, commonly used strategy wealthy investors employ to preserve wealth. The clip ends with a call-to-action to follow for more tips.

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How do the wealthy keep making money even when their investments lose value? Every investor takes losses. That's just part of the game. But did you know that there's a way to take those losses and turn it into tax savings? It's called tax loss harvesting. And the wealthy use this tool to keep more of their money legally. So here's how it works. If your investments lose value, you can actually sell them at a loss to offset taxable gains elsewhere in your portfolio. This will ultimately reduce your tax bill, sometimes even eliminating it completely, depending on how bad that investment was. But there is a catch. You can't just sell it and rebuy the same asset immediately. Also, this is something that you typically typically do at the end of the year. So say it's December 31st. You see that you're essentially under in the red for a specific investment. What you want to do is sell that asset on that day and then buy a similar asset is going into the beginning of the next year. This is where that strategy comes in. The wealthy use this tactic strategically timing their losses to maximize tax efficiency. And while they're keeping their money invested, they don't panic sell they tax loss harvest. If you want to get more of this, follow us and get all of our hacks for free.