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There is additional value that can be added by forgoing an index fund, though. Tax management can be enhanced by rolling your own Total Stock Market index fund,
by tanderson92 8y ago
There is additional value that can be added by forgoing an index fund, though. Tax management can be enhanced by rolling your own Total Stock Market index fund, since individual names can be harvested for capital losses, increasing the after-tax returns of your portfolio relative to a vanilla index fund. I'm not sure quite how to quantify that, but I'm sure someone has been able to do so.
- sokoloff 8y agoAbsolutely. There are a lot of reasons to run your own family office investment office. "Because Vanguard charges too much" isn't one of them, IMO.
- Scoundreller 8y agoI thought you were only able to write-off $3k in capital losses per year against income? If so, not worth dealing with for a billionaire, but definitely an opportunity for a middle-class robo-advisor.
- sokoloff 8y agoYou can write off capital losses up to the amount of capital gains plus an additional $3K. So, if you have $5MM in capital gains, especially short-term, it makes sense to sell off up to $5MM in capital losses.