NO.PZ202301041000001302
问题如下：
Even though the two plans have the same total taxes, the advisor recommends Plan A. The advisor states that Plan A could increase Wald’s expected after-tax account value at the end of Year 2.
Explain how Plan A could increase Wald’s expected after-tax account value at the end of Year 2.
选项：
解释：
A subtle advantage of
tax loss harvesting is pushing a portion of the tax liability into subsequent
years, even though the two-year tax liability does not change. Recognizing an
already incurred loss for tax purposes saves taxes in the current year and thus
increases the amount of net-of-tax money available for investment. Assuming, on
average, positive portfolio returns, this larger investment will lead to a
greater future wealth accumulation.
in year 1, plan A will only pay 1000 tax, so the ending value of plan A is 174,000. For plan B, the tax of year 1 is 10,000 so the ending value of plan B is 165,000.
Even though the expected return for both stock Z and Y is the same, plan A which has higher initial value of year 2 will generate more amount of return, thus, plan A's the terminal value of year 2 will be more than plan B's
