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Tax loss harvesting only makes sense if you keep on buying and selling multiple funds/products. Hold only one index fund, hold it long-term and the problem van
by simo7 10y ago
Tax loss harvesting only makes sense if you keep on buying and selling multiple funds/products.
Hold only one index fund, hold it long-term and the problem vanishes: all the gains are not taxed until you sell the fund and they are always net of losses.
Not to mention the massive benefit of deferring taxes in a compounding context.
- mrkurt 10y agoWealthfront buys the individual shares that track an index. When shares lose value, they'll sell those and buy other shares that are equivalent. It worked pretty well for me in 2016. I was up ~11% total and about to deduct about 6% in losses.
- pscsbs 10y agoHowever, that 6% is capped by the IRS at $3,000 per year.