How the Middle Class Misses Out on Tax Loss Harvesting

Episode 51 of Wealth Distribution with Fexingo. Lucas and Luna unpack why tax loss harvesting — a simple strategy that lets investors offset gains with losses — is overwhelmingly used by the wealthy, not the middle class. They walk through how a $50,000 portfolio might generate only $1,500 in losses per year versus $15,000 for a $500,000 portfolio, and how Vanguard's data shows the bottom 60% of households harvest losses at less than one-tenth the rate of the top 1%. They also explain how robo-advisors like Betterment and Wealthfront automated the process for smaller accounts but still see far less uptake among middle income earners. A concrete look at how a tax code provision meant for everyone ends up being a tool for the rich. #TaxLossHarvesting #WealthGap #MiddleClass #Investing #TaxStrategy #CapitalGains #RoboAdvisor #Betterment #Wealthfront #Vanguard #PassiveInvesting #TaxEfficiency #WealthInequality #PortfolioManagement #Economics #WealthDistribution #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo