Allison Bonds, CIMA, CPWA, Managing Director, Head of Private Wealth Management & Independent Wealth Management, State Street SPDR ETFs joined Keith Black, Managing Director, RIA Channel to discuss how advisors can maximize tax-loss harvesting opportunities in fixed income.
Although 2022 was a challenging year for both equities and fixed income markets, tax-loss harvesting benefits serves as the major silver lining, says Bonds. As the investment climate continues to change, particularly in fixed income, advisors have the opportunity to bank this year’s losses to offset future gains, while at the same time repositioning client portfolios for the current environment.
“The biggest misconception about tax-loss harvesting is that it’s a once-a-year-event, but actually its something that should be considered throughout the year,” says Bonds pointing to this year’s volatile market and signs of a rolling recession. Bonds suggests advisors ask themselves three key questions when evaluating a position for tax-loss harvesting:
1. Do I still have conviction in this asset class?
2. Is there a better exposure for this particular environment?
3. Can I reduce expenses for clients at the same time?
For more insights on this topic:
Tax-Loss Harvesting in Down Markets (ssga.com)
Be Ready for any Market with Liquid ETFs
State Street Global Advisors SPDR ETFs – Home
Allison Bonds is a Managing Director of State Street Global Advisors and Head of the Private Wealth Management and Independent Wealth Management channels for the US SPDR ETF business. In this role, Allison is responsible for defining and leading the SPDR ETF distribution strategy, including management of the sales and national accounts teams, across intermediary channels. She is a member of the US SPDR Senior Leadership Team and the SSGA Senior Leadership Team.
Allison is a graduate of Cornell University, where she received a B.S. in marketing. She is a member of the Investment Management Consultants Association and maintains the Certified Investment Management Analyst (CIMA) designation from The Wharton School, University of Pennsylvania. She also holds the Certified Private Wealth Advisor (CPWA) designation from The Booth School of Business, University of Chicago. She maintains her FINRA series 7, 66, 9, 10, and 24 licenses.
Important Risk Information
Equity securities may fluctuate in value and can decline significantly in response to the activities of individual companies and general market and economic conditions.
Bonds generally present less short-term risk and volatility than stocks, but contain interest rate risk (as interest rates raise, bond prices usually fall); issuer default risk; issuer credit risk; liquidity risk; and inflation risk. These effects are usually pronounced for longer-term securities. Any fixed income security sold or redeemed prior to maturity may be subject to a substantial gain or loss.
The information provided does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor’s particular investment objectives, strategies, tax status or investment horizon. You should consult your tax and financial advisor.
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State Street Global Advisors Funds Distributors, LLC, member FINRA, SIPC, One Iron Street, Boston, MA 02210 Not FDIC Insured –No Bank Guarantee – May Lose Value
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Exp. Date 3/31/2023