10 ms·
While I understand (and agree with) the sentiment, I'm not sure it's 100% true. $50 million might be in the range where complicated tax minimization maneuvers s
by akavi 11y ago
While I understand (and agree with) the sentiment, I'm not sure it's 100% true. $50 million might be in the range where complicated tax minimization maneuvers start to become tenable, and you won't get help doing that from a $200 fee-only adviser.
Maybe call the upper limit ~$10 million?
- zeckalpha 11y agohttps://www.betterment.com/tax-loss-harvesting/ https://www.betterment.com/tax-loss-harvesting/
- delazeur 11y agoSure, but that's the low-hanging fruit of tax avoidance.
- lucisferre 11y agoTax loss harvesting doesn't have that big of an impact for most people, and has little to do with the detailed tax planning that high net worth individuals expect from the firms they work with. It also only impacts non-tax advantaged accounts and investments and provides much less value than advertised. In fact iirc Betterment's own white paper on this demonstrated it's expected savings to be far less than what Wealthfront was marketing at the time. http://www.etf.com/sections/blog/23212-inside-robo-advisor-tax-loss-harvesting.html?nopaging=1 http://www.etf.com/sections/blog/23212-inside-robo-advisor-t...
- prostoalex 11y agoMost of the maneuvers at that level aren't that complicated. Harvested long-term capital gains on equities side, municipals on the income side, depreciation on the real estate side. The crazy income optimization schemes you hear about mainly circle around windfall earnings in areas like finance and private equity. US already taxes investment proceeds at favorable rates, and there's no inherent tax on wealth, if the recipient doesn't start working, his income picture won't be too complicated.