Ep.368 You Might Be Overpaying Taxes Every Time You Sell an Investment

Most investors lose money to taxes without ever noticing. Not because they made a bad trade, but because they accepted the default. When you sell stocks, many brokerages automatically use FIFO. Oldest shares sold first. Those usually have the biggest gains. Bigger gains mean bigger taxes. There is a quieter, smarter option: Specific Identification. It lets you choose exactly which shares you sell. Sell the newer lots with smaller gains, and you legally reduce the tax hit. Same investment. Dif...