Preparing for 2026: Tax Loss Harvesting, Rebalancing, and Risk Management

Investors should review their portfolios before 2026 by considering tax loss harvesting, rebalancing and reassessing portfolio risk, and reassessing risk tolerance and time horizon. Tax loss harvesting involves selling a security to offset a tax bill, rebalancing ensures the portfolio is in line with the investor's desired risk profile, and reassessing risk tolerance and time horizon takes into account the investor's age and the purpose of the investment.