Perhaps this was the last nail in the coffin for VA if this happened to all dozen account holders. On the other hand, they have managed to send a number of unwanted email solicitations over the past few months for PAS. Perhaps they think that I need help managing my two fund portfolio at an annual cost of over $3,000. Personally, I’ve found Vanguard to be an excellent asset manager and a poor provider of customer services. Because of this, the best solution I’ve found is to hold Vanguard ETFs at Fidelity or Schwab. I doubt I’m profitable for them either, but they are able to make up the difference with less cost-aware customers.
Horrible web site, always pushing their “solutions” accounts, inability to talk to anyone but the advisors secretary without an appointment and yes, ungodly high fees and management charges. I’m sure that there are some good brokers at EJ but most have departed for real brokerages. If your investment goals include being ripped off then Edward Jones is the place for you. In one of my Ed Jones accounts, I invested 1.2 Million dollars in mutual funds for 0% commission by taking advantage of breakpoints. In the same account, I invested $200,000 in stocks / ETFs and paid a ‘one time’ commission at the time of purchase a few years ago. The commission on those stocks was approx $6,000 at the time of purchase and trading activity has been limited since then.
Mine is all pretty much in ETFs… If I understand this correctly…exchanges are not possible for ETFs? My cost basis screen for VTI and VXUS does not show exchange as an option….only buy or sell and when I try to sell there is no option to pick which lot to sell . With ETFs, you’ll likely have many more trading partners to choose from. For example, on the Vanguard platform, can easily exchange one Vangaurd mutual fund for another Vanguard mutual fund, but I cannot exchange for a mutual fund from another broker. Using ETFs, you could lock in the loss at the moment you choose to sell. You can’t harvest a loss that you don’t know about.
I agree that one should not tax loss harvest without giving a thought to your financial future. It should be part of a larger plan that considers your current and possible future capital gains bracket, state income tax bracket, and charitable giving. What you want to avoid in the 30-day window before and after tax loss harvesting is a wash sale. A wash sale is a purchase of identical or “substantially identical” replacement shares of an asset you sold at a loss during that 61-day timeframe. Remaining losses will be deducted from ordinary income when you file your income taxes, up to $3,000 per year. When you use tax loss harvesting to offset taxable income, savings of $1,000 to $1,400 are typical for a high-income professional in a higher tax bracket. Since we last corresponded I’ve deposited 93K into my Betterment account.
If you purchase 100 or more substantially identical shares within the 30-day window before or after capturing a loss by selling 100 shares, the tax benefit of your efforts is indeed eliminated. If you do accidentally goof this up and create a wash sale, it’s not a huge deal. When you invest or reinvest into a fund that you sold at a loss within 30 days, you’re most likely purchasing a smaller amount than you sold. If you’re afraid you won’t notice the dividends hit your money market fund, have them sent to your checking account where you’ll be more likely to see them, and reinvest from there. The simple answer is to avoid buying replacement shares a month before and after tax loss harvesting. It sounds simple enough, but there are several ways to unwittingly foul this up.
Typically, for traditional personalized investment accounts, robo-advisors compare favorably. Though, as with all things, it depends on your situation and the advisor you think makes the best fit for your needs. Some robo-advisors also offer value-added services beyond simply picking suitable investments. Robo-advisors generally invest your money in index funds matching your risk tolerance and investment goals. If you’d like an automated investing service and investment advisor to manage your money on your behalf, robo-advisors present a remarkably good investment.
The amount of any tax loss harvested in a taxable account will first be used to offset capital gains taken in the same calendar year. It’s a good way to avoid paying capital gains taxes on realized capital gains. These could come from selling stocks, mutual funds, or property.
I sent a plan to Fidelity and they opened non-prototype account in the name of my plan, with me assigned as administrator and trustee. I think you are right, reccomending Bruce Fox, he impressed me as a knowlegeble straightforward individual, who has no problem with disclosing his fees and clearly outlining the extent of his service. On schedule C you will list all kind Fake Turbotax Discount Through Vanguard And Fidelity of expenses, including professional services. Write yourself 1099, for the services you provide on behalf of the property and you are a self-employed individual qualified for solo401k. Fidelity just happy to have you funds without any reporting obligations. I opened one with Fidelity, because I had other 401k accounts from former employers, that I rolled into Sol401k.
The fees listed in this article are misleading and incorrect. Let Edward Jones control some of my money only to find my dog did a better job.
Three days ago, I deposited $5,000 into VTSAX. Can I still do TLH or will this be considered wash sale.
Waiting for a loss to get bigger can be a fool’s errand. It makes sense to have a threshold dollar amount at which you’ll consider harvesting a loss. Once that threshold is crossed, I would seize the opportunity. If the asset class continues to drop, you can TLH again into a third partner within 30 days, or back into your original position beyond 30 days. A similar argument could be made for trading back and forth between any of these funds and Fidelity’s no-fee Total Market Index Fund, FZROX.
Fake TurboTax Discount Through Vanguard and Fidelity http://t.co/nwVOK8kZ
— Harry Sit (@TheFinanceBuff) February 15, 2012
“If you wanted to invest now, how would you get started? ” One future nurse responded, “I’d Google it.” Actually, that’s not a bad answer. We turn to search engines for answers to all kinds of questions.
(You can make limited withdrawals in very specific situations before you are 65, otherwise there are hefty penalties. These, again, are independent of gains or losses. Even worse, after the first year or two, that same $50,000 deposit will likely never receive Tax Loss Harvesting again, as there will simply be no losses to harvest. This has been the case for every single year that the ETFs in Betterment’s portfolio https://turbo-tax.org/ have been around. When you think about it, if you’re investing with the expectation that your money will grow, you must also acknowledge that Tax Loss Harvesting on any one particular deposit will eventually not be possible . After a few years, the cost from the higher fee will negate the early benefit from TLH, and it’s all downhill from there. BTW, for retirement funds with Vanguard, check out VWIAX.