What Your Advisor Should Tell You About Rebalancing with Tax Brackets

Episode 56 of The Financial Advisor Podcast explores how rebalancing a portfolio can trigger unintended tax consequences when it pushes income into a higher bracket. Lucas and Luna walk through a concrete example: a retired couple with $800,000 in a taxable brokerage account who rebalance annually to maintain a 60/40 stock-bond split. They show how selling appreciated equities for gains can push taxable income from $88,000 to over $110,000, crossing the 22% bracket threshold and costing an extra $2,300 in taxes. The hosts discuss strategies like tax-lot harvesting, directing gains to qualified charitable distributions, and rebalancing within tax-deferred accounts first. They also touch on how the 2026 tax-bracket adjustments under the Tax Cuts and Jobs Act sunset could affect planning. The episode aims to help listeners ask their advisor the right questions before making trades. #Rebalancing #TaxBrackets #PortfolioManagement #CapitalGains #TaxLossHarvesting #QualifiedCharitableDistributions #RetirementPlanning #TaxAwareInvesting #AssetAllocation #FinancialAdvisor #TaxStrategy #TCJASunset #TaxLotHarvesting #IncomeTax #WealthManagement #Finance #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo