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Tax loss harvest with Betterment

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  • Tax loss harvest with Betterment

    My wife and I use Betterment (a roboadvisor) to manage our IRAs. My 401k is at Fidelity and my wife's 401k is at Schwab. This year, we would like to start investing into taxable accounts after maximizing our retirement accounts. Betterment offers automatic tax loss harvesting but it cannot sync with external accounts (Schwab and FIdelity) and we would like to avoid wash sale issues. One suggestion Betterment has made is to invest exclusively in target date funds in 401ks. Has anyone done this before? Does this sound ok? We enjoy self managing our finances and do not want to pay a financial advisor but at the same time enjoy being hands off hence using a roboadvisor which is much cheaper (0.25% of AUM).

    I guess the alternative is to do everything ourselves and follow the examples provided on the Whitecoatinvestor website but when I read the step by step guides, I find it overwhelming, especially when multiple brokerages are involved (Fidelity and Schwab). If we decide to take a DIY approach, where do I find a list of mutual funds or ETFs that are identical but do not trigger wash sale?

    Thanks so much for your advice in advance.

  • #2
    Doing target date funds in the 401k's is not unreasonable, especially if you are not interested in managing your money, so long as they are low cost index funds.

    You seem to have about as much knowledge as you need to manage it all yourself. The tax loss harvesting done by Betterment is probably overrated and is something that you could also learn to do on your own.

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    • #3
      Originally posted by VagabondMD View Post
      Doing target date funds in the 401k's is not unreasonable, especially if you are not interested in managing your money, so long as they are low cost index funds.

      You seem to have about as much knowledge as you need to manage it all yourself. The tax loss harvesting done by Betterment is probably overrated and is something that you could also learn to do on your own.
      Any thoughts or suggestions on where I can find a list of interchangeable ETFs and mutual funds that do not trigger wash sale?

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      • #4
        My own personal list:

        US ETFs
        VTI- 0.04%- CRSP US Total Market Index
        SCHB- 0.03%- Dow Jones U.S. Broad Stock Market Index
        VOO- 0.03%- S&P 500
        VV- 0.04%- CRSP US Large Cap Index
        VONE- 0.08%- Russell 1000 Index
        VTWO- 0.10%- Russell 2000 Index
        VTHR- 0.10%- Russell 3000
        MGK- 0.07%- CRSP US Mega Cap Index
        International ETFs
        VXUS- 0.08%- FTSE Global All Cap ex US Index
        SCHF- 0.06%- FTSE Developed ex US Index
        VEU- 0.08%- FTSE All-World ex US Index
        IXUS- 0.09%- MSCI ACWI ex USA IMI Index

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        • #5
          Originally posted by WanderingMD View Post

          Any thoughts or suggestions on where I can find a list of interchangeable ETFs and mutual funds that do not trigger wash sale?
          i mean if you google tax loss harvest partners there are many lists.....

          if you wanted specific advice you could post specific funds that you think would be fine....

          Comment


          • #6
            Originally posted by WanderingMD View Post
            My wife and I use Betterment (a roboadvisor) to manage our IRAs. My 401k is at Fidelity and my wife's 401k is at Schwab. This year, we would like to start investing into taxable accounts after maximizing our retirement accounts. Betterment offers automatic tax loss harvesting but it cannot sync with external accounts (Schwab and FIdelity) and we would like to avoid wash sale issues. One suggestion Betterment has made is to invest exclusively in target date funds in 401ks. Has anyone done this before? Does this sound ok? We enjoy self managing our finances and do not want to pay a financial advisor but at the same time enjoy being hands off hence using a roboadvisor which is much cheaper (0.25% of AUM).

            I guess the alternative is to do everything ourselves and follow the examples provided on the Whitecoatinvestor website but when I read the step by step guides, I find it overwhelming, especially when multiple brokerages are involved (Fidelity and Schwab). If we decide to take a DIY approach, where do I find a list of mutual funds or ETFs that are identical but do not trigger wash sale?

            Thanks so much for your advice in advance.
            I had the same problem with VG PAS. I stopped using them , been doing it myself since Jan 2019. Done TLH in March 20 by reading WCI & POF step by step guide for TLH with VG and fidelity.
            I use 3 fund portfolio, very simple.
            Hope this helps.

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