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I don't use a robo-advisor, but TLH saves me 6 figures in taxes every year. Sadly I'm not comfortable disclosing the size of my portfolio. It's big enough to ha
by sulam 10y ago
I don't use a robo-advisor, but TLH saves me 6 figures in taxes every year. Sadly I'm not comfortable disclosing the size of my portfolio. It's big enough to have an account with most bankers, but not big enough to require dedicated staff. :)
- matwood 10y ago> but TLH saves me 6 figures in taxes every year. This is a bit misleading since the only way to save 6 figures on capital gains every year from TLH is to have realized > 6 figure loss at some point in the past. The offset on regular income is also maxed at 3k/year. The losses/gains must also be in a taxable account. https://www.bogleheads.org/wiki/Tax_loss_harvesting#Using_a_loss_from_one_tax_lot_to_offset_the_capital_gains_from_another https://www.bogleheads.org/wiki/Tax_loss_harvesting#Using_a_... TLH can be useful in certain situations (like yours), but I think generally it is oversold by the likes of Wealthfront and Betterment.
- narrator 10y agoSo you have big capital gains somewhere else in your portfolio that lets you take big deductions from TLH?
- sulam 10y agoYes, absolutely. I also have an AMT overhang, but I doubt that will be used up in my lifetime.