I had a question for the veteran investors on the forum. I recently purchased a large lot (lumpsum) of the Vanguard Tax Managed Small Cap Index fund (VTMSX). It appears that I bought it at one of the many peaks, that relatively volatile indices like this one incur. I have a potentially harvestable loss of ~$1500. However, I have no experience with tax loss harvesting.
1. When does one bite the bullet and perform tax loss harvesting? Do I need to wait for a Brexit like situation where there is a sizable dip in the amount, or can I book this as a loss at this time? I am favoring the latter.
2. Would VSMAX be a reasonable TLH partner to VTMSX? They seem to corelate for the most part, but don't follow the same index.
3. How do I go back to VTMSX at a later date?
4. Does Vanguard perform the exchange (or 'buy-sell' transaction) on the same day's price, or does the transaction get delayed by 24-48 hours?
I appreciate your insights.
1. When does one bite the bullet and perform tax loss harvesting? Do I need to wait for a Brexit like situation where there is a sizable dip in the amount, or can I book this as a loss at this time? I am favoring the latter.
2. Would VSMAX be a reasonable TLH partner to VTMSX? They seem to corelate for the most part, but don't follow the same index.
3. How do I go back to VTMSX at a later date?
4. Does Vanguard perform the exchange (or 'buy-sell' transaction) on the same day's price, or does the transaction get delayed by 24-48 hours?
I appreciate your insights.
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