How the Middle Class Misses Out on Tax-Loss Harvesting

Episode 29 of Wealth Distribution with Fexingo digs into a tax strategy that quietly shifts wealth to the top: tax-loss harvesting. Lucas explains how the rich use market downturns to offset gains and reduce tax bills, while the middle class often misses out because they don't hold individual stocks or use robo-advisors. Luna points out that over 70 percent of tax-loss harvesting benefits go to the top 10 percent. The hosts explore why this matters for portfolio construction, how the 2018 market dip showed the gap, and whether robo-advisors like Wealthfront and Betterment are closing it. They also discuss the behavioural side: loss aversion makes the middle class less likely to sell losers. The episode ties into the broader theme of invisible tax advantages that widen inequality, and gives listeners a concrete concept to recognize in the news. #TaxLossHarvesting #WealthInequality #MiddleClass #TaxStrategy #Investing #RoboAdvisors #Wealthfront #Betterment #LossAversion #BehavioralFinance #CapitalGains #PortfolioManagement #MarketDownturn #TaxAdvantage #Economics #FexingoBusiness #BusinessPodcast #WealthDistribution Keep every episode free: buymeacoffee.com/fexingo