Why Market Volatility Can Be Great for Your Tax Return

• • Many investors fear volatility, thinking about potential portfolio losses above all else. However, losses can present a great opportunity for investors who also aim to reduce their tax bill.

• • When we lose money in a portfolio, we have an opportunity to recognize those losses and take a tax deduction (up to $3k per year in excess of portfolio gains can be deducted)
  • As long as we purchase another investment, we maintain access to any future gain that may occur in the market. 
  • 2020 provided a great example of how to make an above average return while also maximizing annually allowed losses. When the market dropped drastically in March, an investor could easily sell enough of a position to take their $3k tax deductible loss. Then purchased a new security that participated in the rebound, thus maximizing investment related losses while also capturing the above average market growth of 2020!

Interview: Lauren Oschman

Lauren Oschman, CFP® is a financial advisor for some of the nation’s highest caliber physicians. She holds an economics degree from Vanderbilt University and completed her financial training at Emerson University. Along with these prestigious degrees, Oschman has over a decade of expertise in financial matters for high net worth individuals. 

Oschman delivers financial education programs to medical residents & fellows nationwide (Vanderbilt, Dartmouth, Rush, OrthoCarolina and many others), has built a $1 million revenue financial planning business, and co-founded Vestia Personal Wealth Advisors, and is an expert in helping physicians attain their financial goals—and has a niche passion for working with high-caliber female surgeons, and volunteers as a CFP® WIN (Women’s Initiative) Advocate to raise awareness about the profession for young women.

Her decade-long experience as an accomplished financial advisor and executive has led to her being a sought-after speaker for financial workshops throughout Alabama, Georgia—and Tennessee, where she has happily resided with her husband and two young children.