5 ms·
Under 2, why would you end up worse off? I'm decidedly unsophisticated in this domain.
by recursive 2y ago
Under 2, why would you end up worse off? I'm decidedly unsophisticated in this domain.
- nicd 2y agoBecause liquidating / selling your shares is a taxable event. If you purchased a simple ETF to begin with, your tax burden would have been lower.
- gdudeman 2y agoRight, the whole point of these tricks is to compound a continuously larger amount. If you liquidate, you pay taxes (even more in one year with tax loss harvesting) and begin compounding from a lower starting point going forward.