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Sticky Fig and Pecan Pudding With Toffee Sauce
The Benefits of Tax-Loss Harvesting at Year End
Inspired by Delicious.com
INGREDIENTS •
3/4 cup unsalted butter, softened 2/3 cup brown sugar
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3/4 cup pecans, roughly chopped 1/2 cup hot water
Many investors use tax-loss harvesting to optimize their portfolios and reduce taxable income. It involves selling underperforming investments to realize a loss, which can then be used to offset capital gains from winning investments or, in some cases, even reduce ordinary income. While it can be executed throughout the year, many investors choose to focus on tax-loss harvesting at the end of the year. Let’s take a look at why. Maximizing Tax Benefits The end of the year is a natural time for investors to evaluate their portfolio’s performance and assess their financial picture. By waiting until late in the year, they have a clearer view of their total capital gains for the tax year. This allows them to calculate how much in losses they need to harvest to offset gains effectively, potentially reducing their tax liability. Strategic Portfolio Adjustments Investors often use this time to realign their asset allocation, selling underperforming assets to harvest losses while reinvesting in assets that better align with their long-term goals. This can improve their portfolio’s efficiency while taking advantage of tax-saving opportunities. A Smart Financial Habit While tax-loss harvesting is a useful strategy, it’s not just about reducing taxes — it’s about optimizing investment performance. Investors should focus on long-term goals to ensure their decisions align with their financial plans rather than short-term tax benefits driving them.
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2 eggs, beaten
Toffee sauce • 1/2 cup
1 tsp baking powder
3/4 cup self-rising flour
unsalted butter
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1 cup brown sugar 1/2 cup heavy cream
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3/4 cup dried figs, roughly chopped
DIRECTIONS
1. Preheat oven to 350 F. Grease a 6-cup ovenproof bowl and line the bottom with waxed paper. 2. In a large bowl, beat butter, sugar, eggs, baking powder, and flour until smooth. Stir in pecans and figs, then add 1/2 cup hot water. 3. Pour batter into prepared bowl, cover with a circle of waxed paper, then cover tightly with foil. Bake for 50–60 minutes until a skewer inserted into the center comes out clean. 4. For toffee sauce, put butter and sugar in a saucepan over low heat, stirring constantly until the sugar dissolves. Stir in cream and increase heat to medium. Bring to just below boiling, then reduce heat to low and cook, stirring occasionally, for 5–7 minutes until thickened. 5. Turn pudding onto a plate and drizzle with toffee sauce.
By taking stock of their investments and acting before the end of the year, investors can set themselves up for a more financially efficient future.
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