Your Chance to Collect Free Money

Every wealth builder should focus on maximizing total return, which means minimizing taxes. The recent bear market has created an important opportunity.  [Browser View]( [Liberty Through Wealth]( Use This Bear Market to Collect Free Money Alexander Green, Chief Investment Strategist, The Oxford Club  Every wealth builder should be focused on maximizing their total return, which means minimizing their taxes.  Today, Alexander Green explains how the recent bear market created an important opportunity for investors to do exactly that.  [Marc Lichtenfeld Just STUNNED The Oxford Club]( Imagine finding bargain stocks going for just $4.97... $3.15... and $2.04...  [Dollar Bills and Pennies](  That can [churn out literally thousands in cash](! Better yet... they come with a remarkably LOW level of risk. It's a crazy story... but 100% true and verifiable. [Check it out here.](  Editor's Note: Concerned about making smart investment moves in the midst of the coronavirus? Alexander Green is here for you. Make sure you read today's article about minimizing your taxes with capital losses and check out his [latest video update](.  [Making Smart Investments](  - Christina Grieves, Senior Managing Editor  [Alexander Green]  In a headline like the one above, the words free money are usually in quotation marks, indicating the phrase is metaphorical, not literal. There are no quotation marks today. That's because I want to show you how to collect actual free money. I'm not referring to the financial aid that the federal government is sending out, although Uncle Sam will play a role. Let me explain... In [my last column](, I noted that every investor's long-term goal should be the same: maximum total return. How is your total return calculated? Here's a simple formula: Total Return = Return on Invested Capital + Dividends and Interest - Investment Costs - Taxes. Today let's focus on that last item. In my former life as a money manager, I was surprised how many investors are oblivious to the tax consequences of their investment decisions. Big mistake. If you aren't careful, you can turn many tens of thousands of dollars over to the IRS - that weren't required. (Indeed, the typical high net worth investor pays a million dollars in local, state and federal taxes well before he or she accumulates a net worth of a million dollars or more.)  [Mysterious Powder Makes Cancer Cells Kill Themselves]( [Bowl of Mysterious Powder](  Discover the proven cancer-destroying compound that's stunning doctors. [Click here for the full details.]( SPONSORED  It makes sense to tax-manage your portfolio. And one way to do that is to harvest tax losses. In the 11-year bull market that just ended, we rarely had enough capital losses to offset all our realized capital gains. But the ferocious bear market of the last few weeks has handed you an opportunity. (Even if it doesn't feel like it.) You not only have the chance to buy undervalued stocks. (We're doing plenty of that in my Oxford Communiqué portfolios and VIP Trading Services.) You also can make lateral moves that will save you many thousands of dollars and cost you nothing. Here's how it works. The IRS allows you to offset realized capital gains - and up to $3,000 annually in earned income - by realizing capital losses (i.e., selling securities for less than what you paid for them). Historically, there have been three objections to this: - The investor didn't want to miss a rebound in the market. - The investor wasn't sitting on realized gains to offset. - The investor didn't want to pay the trading costs. The third is history. Discount brokers across the board have taken commissions to zero. The second is irrelevant. Even if you're not sitting on a ton of realized capital gains at the moment, you will have them in the future. (And realized capital losses carry forward indefinitely. There is no expiration date.) So let's consider the last remaining concern: You may miss out on a market rebound. If you own index funds or ETFs - which should form the foundation of your investment program - you can sell the funds you own at a loss and replace them immediately with different but virtually identical funds. For example, you can sell the iShares Core S&P 500 ETF (NYSE: IVV) for a loss and immediately replace it with the Vanguard S&P 500 ETF (NYSE: VOO). The two funds hold the same securities in the same percentages. The only real difference is the iShares ETF has a microscopic annual expense ratio of 0.04%, while the Vanguard ETF has a near-invisible expense ratio of 0.03%. Since the funds are different - even though their benchmark and annual returns are the same - they do not run afoul of [the wash-sale rule](, which prevents an investor from taking a loss for tax purposes without waiting 30 days to buy the same security back. You can also do this with various sectors in your portfolio. For instance, you can realize a loss in the Utilities Select Sector SPDR Fund (NYSE: XLU) and immediately put the proceeds into the Vanguard Utilities ETF (NYSE: VPU). Or you can sell the Energy Select Sector SPDR Fund (NYSE: XLE) and immediately replace it with the Vanguard Energy ETF (NYSE: VDE). You can even pull this off with some stocks. An investor might take a loss in Exxon Mobil (NYSE: XOM) and replace it with Chevron (NYSE: CVX), for example. Or sell United Airlines (Nasdaq: UAL) and replace it with Delta Air Lines (NYSE: DAL). Or sell AT&T (NYSE: T) and replace it with Verizon (NYSE: VZ). Unlike with ETFs, you will have variability in the future returns of individual stocks, of course. But companies in the same sector tend to rise and fall in tandem. Why is it smart to switch now? Five reasons. For starters, we've just had the fastest bear market in history. Second, it costs nothing. Third, you don't risk being out of the market - or a sector - during a rebound. Fourth, you will lower the cost basis on your investments. And fifth, you are generating free money - no quotation marks - because you will save thousands of dollars in future taxes on income and capital gains. After the market rebounds, this opportunity will be lost. So do it now. Good investing, Alex  ** CORONAVIRUS CRISIS: THE LATEST ** From Our Health Partners at Practical Health Today "This is the moment to not be going to the grocery store, not going to the pharmacy, but doing everything you can to keep your family and your friends safe." That's the official word from Dr. Deborah Birx, White House coronavirus response coordinator. So what should you do if you run out of milk and eggs? Many grocery stores across the country now offer delivery... But to avoid person-to-person contact, have your groceries dropped off at a designated spot. And once your supplies are inside, wash any plastic, glass or metal containers with dish soap before putting them away. Then wash your hands thoroughly and wipe down any surfaces that have been touched by you or your groceries. A little soap and water is all it takes to kill the virus on surfaces. For the latest news on the coronavirus and natural ways to fight back, [check out the Practical Health Today website.]( Or sign up for e-letter updates by [clicking here](.  [Leave a Comment](  [Facebook]( [Twitter]( [share](mailto:?subject=A%20great%20piece%20from%20Liberty%20Through%20Wealth...&body=From%20Liberty%20Through%20Wealth:%0D%0A%0D%0A Every%20wealth%20builder%20should%20focus%20on%20maximizing%20total%20return,%20which%20means%20minimizing%20taxes.%20The%20recent%20bear%20market%20has%20created%20an%20important%20opportunity.%0A%0D ?src=shared)  About Alex  Alexander Green is the Chief Investment Strategist of The Oxford Club. He heads Liberty Through Wealth, [The Oxford Communiqué](, The Insider Alert, The Momentum Alert and Oxford Microcap Trader. Alex is also the author of [four national bestsellers](.  [Doesn't Matter Whether It's 1G or 5G - People Will ALWAYS Get Rich]( [1G Through 5G Bar Chart](After 1G launched, AT&T soared 1,135%, and Motorola jumped 2,522%. When 2G came out, Nokia skyrocketed 4,748%, and Qualcomm flew up 7,705%. After 3G debuted, Cincinnati Bell ran up 2,696%, and InterDigital rose 5,015%. And when 4G rolled out, Broadcom went up 2,155%, and Crown Castle leaped 13,435%. 5G is mere weeks away from becoming a reality. [This is YOUR chance to get rich.](  More From Liberty Through Wealth  [Retired Couple]( [A New Way to Think About Retirement Income]( By Alexander Green Investors who focus on income first often make poor investment moves. Here's why liquid securities offer the best wealth protection during this crisis. [Toy Robot]( [Welcome to the Quant Investing Revolution]( By Nicholas Vardy Twenty years ago, quant investing required millions of dollars and a Ph.D. Today, quant investing and swing trading are much more accessible to investors. [Exercising at Home]( [7 Steps to Build Immunity]( By Joel Salatin Self-described lunatic farmer Joel Salatin has some controversial opinions about the coronavirus... and an unconventional recipe to help you stay healthy. You are receiving this email because you subscribed to Liberty Through Wealth. To unsubscribe from Liberty Through Wealth, [click here](. Questions? Check out our [FAQs](. Trying to reach us? [Contact us here.]( Please do not reply to this email as it goes to an unmonitored inbox. To cancel by mail or for any other subscription issues, write us at: Liberty Through Wealth | Attn: Member Services | P.O. 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