What is capital gains harvesting?
Have you heard of capital gains harvesting and wondered if it might benefit you? Much like tax loss harvesting, where you sell underperforming investments to offset capital gains, capital gains harvesting involves strategically selling assets that have appreciated to take advantage of favorable tax conditions. This tactic can be especially useful if you’re in a lower tax bracket this year and can realize gains at a 0% tax rate, allowing you to “harvest” some of those gains without a tax hit. It’s an effective way to reset your cost basis on investments without paying the usual capital gains tax.
In 2025, if you’re single and your taxable income is $48,349, then you pay 0% on long term capital gains. If your income was just a few dollars higher, such as $48,352, then you’ll pay 15% on long term capital gains.And since you’ll have to make this decision before the end of the calendar year, it can be tricky to play too close to the limits.
~Jim Wang, WalletHacks
This article by Jim Wang provides an in-depth look at how capital gains harvesting works and the potential benefits based on your income level. Wang explains that if you’re under certain income thresholds, like the $47,025 limit for single filers in 2024, you could sell investments at a profit and avoid taxes on those gains entirely. However, he cautions that planning around these income brackets is essential—just a few extra dollars of income could push you into the 15% tax bracket, making careful calculation key. If you’re interested in maximizing your tax efficiency, especially in years when your income is lower, this article is a must-read.
The Key to A Happy Early Retirement
Have you heard of the FIRE (financial independence/retire early) movement? Perhaps you’re even using CountAbout’s FIRE tracker to see how close you are to early retirement. But are you worried that once you reach your retirement number you won’t know how to fill that free time? Many people imagine that retirement is all relaxation, but those who retire early often find that staying busy is essential to long-term happiness. After leaving a demanding job, it’s tempting to think you’ll be content with leisurely days, but most early retirees find themselves needing purpose and structure. With some careful planning, you can craft a fulfilling retirement that’s not only relaxing but also full of engaging projects and activities.
Anyway, I want to give Dr. C some tips for a happy and successful early retirement. Dr. C is frugal, childless, and has a working spouse. We can safely assume Dr. C is well prepared financially. I think the bigger issue will be the transition to retirement. Retiring can be jarring at any age
~Joe, Retire by 40
In this article, the author, Joe of Retire By 40, a retired engineer and stay-at-home dad, shares valuable insights from his own early retirement experience. He emphasizes the importance of having passion projects, like blogging, side hustles, or new hobbies, to keep busy and avoid boredom. Over time, he has adapted his activities to fit his changing interests, shifting from parenting to blogging to new hobbies like pottery and bonsai. The article is framed in terms of advice he gave his primary care doctor, who is considering retirement. His advice to his retiring doctor is to start slow, enjoy some relaxation, then dive into trying out new skills and activities, whether that’s volunteering, learning new crafts, or joining community classes. If you’re curious about making the most of early retirement, this article offers a refreshing perspective on how staying active can make all the difference.
Building A Wealth Fortress Or ‘Die With Zero’?
Are you planning for your financial future and wondering if you should use your wealth to buy memorable experiences while you’re still living, or build up a huge sum that could potentially be passed down as an inheritance to your children? This debate between building a “wealth fortress” and embracing the philosophy of “Die With Zero” challenges traditional financial planning. In the book Die With Zero, author Bill Perkins argues that we should aim to fully spend our money within our lifetime, using it to create rich experiences and “memory dividends” for ourselves and our loved ones. In other words, instead of focusing on accumulating assets, Perkins believes that we should prioritize meaningful moments over material wealth. This is in contrast to most financial planners who tell you to build a “wealth fortress” by accumulating assets throughout your life to protect you in case of potential catastrophes.
Are we supposed to master delayed gratification and build a lasting “wealth fortress” to protect our families? Or do we spend more freely, prioritize the experiences of today, and embrace the idea of “dying with zero”?
~Wise Stacker
This article by Wise Stacker explores both perspectives, with the author sharing their view on finding a balanced approach. While the concept of living for today has appeal, the author argues that we must also consider the security and stability future generations might need—especially in times of economic uncertainty. Building a wealth fortress, they suggest, can offer a protective foundation for family while still allowing room to enjoy life’s richness. In this balanced approach, wealth becomes both a tool for memorable experiences and a legacy that can provide for loved ones well beyond our lifetimes. If you’re navigating this choice, this article offers thoughtful insights on creating a legacy that marries meaningful experiences with lasting financial stability.