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Financial Planning Startup Wealthfront Woos Silicon Valley Workers With A Once-Secret Investment Trick

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http://techcrunch.com – Wealthfront, a Palo Alto-based startup that wants to democratize wealth management, is giving users access to a once-exclusive investment trick called tax loss harvesting that lets them boost their long-term returns. It sounds wonky, but the strategy basically entails selling poorly performing investments at the end of the year so that they can be written off against gains in a portfolio, reducing an overall tax bill. (There’s a video that explains it below.) Wealthfront says that this technique can boost after-tax returns by more than 1 percent a year. Over 20 years, that could be more (IT news)