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NORTH POINT ADVISOR GROUPTAX-LOSS HARVESTINGTaking Advantage of Market VolatilityThere is no limit on the amount of capital gains you can offset. If you had gains of $30,000 duringthe tax year, offsetting those gains with $30,000 of losses would save you $7,140 (assuming capitalgains tax rate of 23.8%). Your investment portfolio would remain fully invested, but your tax billwill be substantially lower. These tax savings don’t show up on your statement’s portfolioperformance numbers.Harvested losses greater than $3,000 do not have to be used in the year incurred. Losses can beaccumulated and never expire. Proactively harvesting losses during market downturns providesflexibility to tax efficiently reposition your portfolio during periods when your investments havegains. Combining Tax-Loss Harvesting with Rebalancing (adding to your equity allocation during marketcorrections) is a powerful way to take advantage of market volatility.N O R T H P O I N T A D V I S O R G R O U P . C O M* Ass umed 23.8% ca pital gains t ax rate. S ource: JPMorg anRemaining fully invested during periods of market volatility can eliminate many emotional errorsfor investors. “Buy-and-hold” investing, however, does not necessarily mean “do nothing.” Theconcept of Tax-Loss Harvesting is an active way to add value to your investment strategy. Let’s look at an example: If your $10,000 investment declines in value to $8,000, you can sell that investment for a $2,000loss and invest the proceeds into a similar, but not substantially identical, investment. The realized $2,000 can be used to offset any capital gains you have from other investment sales.If you have no capital gains, the loss can be used to offset ordinary income (up to a maximum of$3,000 per year).The opinions in this material are for general information only and are not intended to provide specific advice or recommendations for anyindividual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. Investing alsoinvolves risk including loss of principal. This is not intended to be a substitute for specific individualized tax advice. We suggest you discussyour specific tax issues with a qualified tax advisor. Securities offered through LPL Financial, member FINRA/SIPC. Investment advice offered through Great Valley Advisor Group, a RegisteredInvestment Advisor. Great Valley Advisor Group and North Point Advisor Group are separate entities from LPL Financial.TRADITIONALBUY & HOLDTURNING A LOSS INTO A POSITIVE$10,000OriginalValueInvestment Declines $8,000SellInvestment $2,000LossBuy SimilarNewInvestment $476 Tax Savings$8,000CurrentValue$2,000Loss