December 27, 2025

Happy Saturday, everyone! ☀️
Good morning — hope today feels calm, unhurried, and exactly as slow (or productive) as you want it to be.

Quick question to start the day: Have you ever heard a “smart tax move” that sounded great… but also kind of risky?
Tax-loss harvesting is one of those tools — powerful when done right, frustrating when done wrong.

Today’s post breaks it down simply, showing how to use it correctly and avoid the mistakes that quietly cancel out the benefit.

No stress. No guesswork. Just smarter moves.

— Ryan Rincon, Founder at The Wealth Wagon Inc.

— Epictetus

Market Update: Today’s market action came in soft on the indices but surprisingly strong across several key assets. The Nasdaq, S&P 500, and Dow Jones all slipped slightly—down 0.09%, 0.03%, and 0.04% respectively—reflecting a quiet, cautious trading day rather than any major shift in sentiment.

Meanwhile, Bitcoin managed a 0.33% climb, continuing to hover confidently near the upper end of its current range. Safe-haven metals shined as well: Gold added 1.37%, while Silver absolutely stole the show with a +10.94% surge, marking one of the day’s standout moves.

In equities, Roblox nudged higher by 0.35%, Pfizer ticked up 0.20%, and Palantir was the lone notable laggard, sliding 2.81% after a previously strong run.

Overall, despite softening in the major indices, strength in metals and select names made for a mixed but interesting day across the markets.

8 Killed in Syria Mosque Blast, Government Says
A deadly explosion at a Syrian mosque left eight people dead, prompting immediate government accusations toward extremist groups. Security forces have increased patrols in surrounding districts as fears of additional attacks rise. Local officials say the blast underscores ongoing instability in the region despite recent ceasefire efforts.

Former Malaysian Leader Najib Razak Sentenced in 1MDB Corruption Trial
Najib Razak received a 15-year sentence and a significant financial penalty in the long-running 1MDB scandal. The ruling marks one of the toughest legal outcomes yet for the former prime minister. Analysts say it sends a strong signal about Malaysia’s intent to address high-level corruption.

Southern Yemeni Separatists Reject Saudi Call to Withdraw
Southern separatist leaders dismissed Saudi Arabia’s request for their forces to pull back from key eastern provinces. The standoff highlights internal fractures within the coalition seeking to stabilize Yemen. Political observers warn the dispute could slow diplomatic progress and worsen regional tensions.

What to Know About the Militants Targeted by U.S. Airstrikes in Nigeria
New U.S. strikes targeted militant groups in northwest Nigeria believed to be responsible for escalating violence in rural areas. Officials say the action is part of a broader effort to disrupt extremist networks before they expand further. Local leaders remain divided on how the operations will affect regional stability.

Trump Invited White South Africans to America — One Ended Up in Detention
A South African family brought to the U.S. under a Trump-era humanitarian invitation faced unexpected immigration scrutiny, leading to one member’s detention. The case has raised questions about policy inconsistencies and communication failures across agencies. Advocacy groups are urging for a review of similar cases involving vulnerable migrants.

Experts Say Denmark Isn't a Model for U.S. Vaccine Policy
Public-health specialists argue that Denmark’s approach to vaccination can’t be directly replicated in the U.S. due to demographic, political, and healthcare system differences. They caution that oversimplifying international comparisons leads to unrealistic expectations. The discussion comes amid ongoing debates about national immunization strategies.

Economic Divide Widens Between Portland and Rural Maine, Report Finds
A new report shows economic growth in Portland accelerating while many rural areas fall further behind. Analysts blame unequal investment, demographic shifts, and declining local industries. Policymakers are now facing pressure to address the widening gap before long-term damage sets in.

A 'Jobless Boom' Could Define the 2026 Economy
Experts warn that high productivity and automation could produce strong economic output without matching job growth. This potential “jobless boom” is already visible in several major industries. Lawmakers are increasingly focused on how to support workers displaced by rapid technological change.

So Long, American Exceptionalism
A new analysis suggests the U.S. may be losing several of the advantages that once distinguished its economy on the global stage. Slowing productivity, shifting trade dynamics, and rising international competition are shaping a new landscape. While the country remains influential, economists say the era of unquestioned dominance is fading.

Tax-loss harvesting is one of the few investing strategies that can increase your after-tax returns without increasing risk.

Yet most people either:

This applies to employees investing in taxable brokerage accounts, business owners, and experienced investors alike.

Here’s how it actually works in real life.

When an investment in a taxable account is below your purchase price, you can sell it at a loss and use that loss to:

This does not mean you lose exposure to the market permanently.

Done correctly, you remain invested while improving your tax position.

This strategy only works in taxable brokerage accounts.

It does not apply to:

If all your money is in retirement accounts, this doesn’t help yet.
If you have any taxable investments, it likely does.

You should consider harvesting losses when:

You should not harvest losses just to “do something.”

The goal is tax efficiency, not activity.

This is where people mess up.

The wash sale rule says:

This includes:

If you violate this rule, the loss disappears.

You don’t sell and sit in cash.

Instead, you swap into a similar but not identical investment.

Example:

You maintain market exposure while preserving the loss.

This is the core technique that makes tax-loss harvesting effective.

A loss doesn’t reduce taxes dollar-for-dollar.

Its value depends on your tax rate.

Example:

That’s real money — without increasing risk.

And unused losses roll forward, so they can help future years.

Tax-loss harvesting is not about predicting the market.

It’s about reacting to volatility.

Down markets create opportunity:

Ironically, bad market years are often when smart investors quietly improve long-term results.

You don’t need to monitor daily.

Most people benefit from checking:

Over-harvesting can create tracking complexity without much benefit.

This is a precision tool, not a hobby.

These are expensive and common:

The strategy should simplify, not complicate, your investing life.

Tax-loss harvesting is most valuable for:

If your taxable portfolio is large, this becomes increasingly powerful.

Tax-loss harvesting:

It doesn’t make headlines.
It doesn’t feel exciting.

But over decades, it materially improves outcomes.

Most investors focus on what to buy.

Smart investors also focus on:

Tax-loss harvesting is one of the few strategies that rewards discipline, patience, and understanding — not speculation.

Used correctly, it’s one of the cleanest ways to improve results without changing your risk profile.