Is tax harvesting worth is for index funds/ETF?
Sep 17, 2021
9 Comments
Trying to decide if:
1) I should let Wealthfront manage my investments and pay them a fee (hoping to offset it with tax harvesting)
2) Invest directly in ETF in robinhood and let it ride
3) Invest in ETF and Index in Fidelity
Which one is the most efficient?
comments
Biggest complaint is the larger than normal cash allocation (about 8% of portfolio in my case), but it is necessary to facilitate quick tax loss harvest without waiting on transactions to settle.
You do need to invest at least $50K to enjoy tax loss harvesting, so keep that in mind as well.
Without any data backing it, I suspect you'll get 90% of the benefit by Diy harvesting and you won't be locked in