No announcement yet.

TLH Target retirement Fund

  • Filter
  • Time
  • Show
Clear All
new posts

  • TLH Target retirement Fund

    Thanks for your help everyone. I am a long time follower and I am slowly putting the pieces together. I have a taxable account that I put money in bimonthly to purchase 2030 Target Retirement Fund at Vanguard. I'm down a few thousand and wanted to tax loss harvest this but I have a few questions.

    #1) Can I sell the target fund and buy a target fund of a different year like 2040?? If not can I buy the corresponding market equivalents of those funds and put it together myself?

    #2) I did no use specific ID as my cost basis when I was setting up my account. Will this make a big difference?


  • #2
    1.  Yes, as long as the holdings are not identical (and they should not be).

    2.  If you are selling all of your 2030 Target, it doesn't matter.  If you have SpecID as your cost basis, you can sell losing lots, and keep those that have a gain, thereby maximizing the size of the loss harvested.  If all lots are down, it would make no difference.  Go ahead and set all funds in your taxable account to SpecID now so you won't have to worry about it again.

    3. Make sure you don't have 2030 Target in any other accounts (Roth, tax deferred).  If you do, make sure you aren't contributing with each paycheck or reinvesting dividends.  It's best not to reinvest dividends in taxable, as well.  Transfer dividends to a bank account or MM fund within the account.  Reinvest into the fund of your choice.  Or blow the cash, it's yours to do as you wish.