If you sell securities at year-end, you might be soaked by the "wash sale" rule. This rule prevents you from claiming a tax loss on the sale of securities if you acquire "substantially identical" securities within 30 days of the sale.

However, it is relatively easy to avoid the wash sale rule. One obvious strategy is to wait at least 31 days before you buy back the same securities. Alternatively, you can "double up" on your investment.

Of course, other economic factors besides taxes should enter into your investment decisions. Just remember to watch out for the wash sale rule if you sell securities at a loss.

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