Tax Alpha Insider

Tax Alpha Insider

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Tax Alpha Insider
If tax-loss harvesting cushions downside, shouldn't investors take more risk?
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If tax-loss harvesting cushions downside, shouldn't investors take more risk?

Partners Capital (2019) argues more equity-like risk is appropriate for taxable investors

Brent Sullivan's avatar
Brent Sullivan
Apr 06, 2025
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Tax Alpha Insider
Tax Alpha Insider
If tax-loss harvesting cushions downside, shouldn't investors take more risk?
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Weekly reading from taxable wealth

Parti Pris: Rules-Based Rebalancing vs. Risk-Based Optimization

Vise: 15 years ago "Enterprise RIA" wasn't even a term

Morningstar: Net Worth Optimization



Most investors use pre-tax returns and volatility to size risk

But taxes soften gains and losses.

Partners Capital (2019) argues taxable investors should take more risk.

I drew the picture above based on the assumptions in their paper.

How does all of this work?

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