We Made a Lot of Money This Year—Here’s Our Problem

It’s been a great year for Palm Beach Research Group subscribers…

You’ve made life-changing gains as the cryptocurrency market exploded higher. The average crypto in our small-cap Palm Beach Confidential portfolio is up 1,547%.

Our Palm Beach Letter portfolio, which focuses on safer, more conservative assets like income-producing stocks, is up an average of 52%. (And that excludes the four crypto plays in the PBL portfolio, which are up quadruple digits.)

And year-to-date, our Palm Beach Income trading service closed all its 25 trades for a profit—for an average annualized return of 18%. 

Unfortunately, when we make money, the taxman wants his cut as well. But there are a couple of things you can do to lower your tax bill.

One of the easiest and quickest ways to do this is through a strategy called “tax-loss harvesting.”

In yesterday’s Daily, I told you that every investor should consider selling their losses. Selling losers and holding onto winners is part of our overall wealth-building strategy.

Selling (or “harvesting”) these losses has the potential to save you thousands of dollars come April 15. And that can go a long way towards building your nest egg.

If you’ve been following us this year, you’ve probably already booked a few realized gains. But if you’re holding onto some losers as well, you can use them to offset the tax liability on your gains.

Today, I’ll show you four simple steps you can take to “harvest” your losses. (And the best part is that it takes less than an hour to do so.)

How “Tax Harvesting” Works

Every time we sell an investment, there’s a tax consequence.

If you have a gain, you owe money. If you have a loss, you might be able to write those losses off. And you can use the offsetting losses to your benefit.

We call this “tax loss harvesting.” And it can help you instantly recoup a portion of your biggest losses.

Here’s an example…

Let’s say you made $10,000 in your trading account this year. You could owe up to $3,960 in taxes. To cut that down, look at your open positions.

Specifically, look at your losers. What are you doing hanging onto those losers anyway? As I told you yesterday, on average, they underperform winners.

Now, let’s say you have a position showing a $5,000 loss. You can book that loss now and it would eliminate half of the $3,960 tax bill from your gains.

That’s a potential $1,980 going back into your pocket.

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How to Harvest Those Losses

To figure out if you have any losses to harvest, follow these steps (they should take less than an hour):

  1. Go to your brokerage account.

  2. Find the “History and Statements” section.

  3. Click on the “Realized Gain/Loss” report.

  4. If you made a lot of gains, sell some losers.

For more information, you can read this article from Fidelity to help manage taxes on your investment gains.

Remember, tax laws are always changing… And the tax code is very complicated. If you’re still uncertain about your taxes, you should consult a qualified tax preparer.

The thousands you can save make your tax accountant worth the expense.


Nick Rokke, CFA
Analyst, The Palm Beach Daily

P.S. We’ve heard from plenty of subscribers who’ve booked massive gains this year from our services (see today’s Mailbag). We’d like to hear how you plan to use them…

Do you plan to take a vacation or buy a new car? Maybe you’re setting aside some of those gains for a child or grandchild’s college education? Or is it all going into your retirement nest egg? Let us know right here


Bitcoin Surges Past $10,000

On March 27, we made a bold call in the Daily.

At the time, bitcoin was sitting at $966. And we predicted it would reach $10,000 per coin (“Three Reasons Why Bitcoin Could Reach $10,000 (Or More)”).

This sounded crazy at the time… Bitcoin needed to rise over 935% for that prediction to come true.

We hope you took his advice and bought some bitcoin back then. Because on Tuesday, bitcoin broke past $10,000.

This isn’t the end of the ride, though. We expect bitcoin to continue to rise.

Nick Rokke


From Dan S.: I just wanted to thank Teeka Tiwari for his awesome recommendations in cryptocurrencies. I’m up close to $600,000. If I sold my free coins today, they would pay for all the coins I bought! I believe these coins will be worth over $1 million at some point next year. You’re the BEST!

From Tom L.: I want to offer an apology to PBRG for going off in an email I sent a while ago about your marketing. Yes, the marketing can be kind of over-the-top. BUT, I can also say without hesitation that I no longer have any reservations about my Infinity membership with PBRG. And much of that is because of Teeka’s cryptocurrency work. It’s fantastic.

From Coach M.: Teeka, I just signed up to Palm Beach Confidential yesterday. I just wanted to say thank you in advance for all the research that you have done on cryptocurrencies. You make the crypto pathway clear like Tarzan cutting through the jungle.

From Gene C.: Teeka, I’m happy to say that I took your advice and put $1,500 into bitcoin and another cryptocurrency you suggested in mid-May. And today, my account has grown to over $7,000. Never have I made profits like this ever.


On December 19, an FDA anomaly could launch the “God Key” 35,000%. Find out why

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