The Fund Library Publishes Samantha Prasad's "Never Let A Loss Go To Waste"

Never let a loss go to waste

Investment losses can shelter or offset capital gains

My eldest daughter recently decided that she wanted to open an investment account into which she can put part of her earnings from her part-time job. The idea of investing with her own money made her quite excited, and pretty soon she was talking about what she was going to do with all of her money when she eventually found the next GameStop and cashed out her investments. Of course, we had to explain the concept of the stock market to her.

Sometimes in a down economy, or where the stock market might take a hard turn downwards, it might be best to keep her savings in cash and cash equivalent instruments, usually the first thing investors might look to. No doubt the low risk associated with such investments is hard to ignore. However, it should be worth noting that sometimes seeking safety in income-producing investments and cash may also buy you a tax problem, since it may likely