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Tax Loss Harvesting

hecolix over 1 year ago

For the robo portfolios that you have been tracking, how much of a benefit has the tax loss harvesting features been?


Comments

  • 4a042b8382a008d344561c8301509f3a?s=100&d=identicon
    Matthew Hui
    over 1 year ago

    It's not a huge benefit but it can definitely offset the fee of a robo-advisor. This report found that the benefit of tax loss harvesting is about 0.2-0.3% a year - https://www.kitces.com/blog/evaluating-the-tax-deferral-and-tax-bracket-arbitrage-benefits-of-tax-loss-harvesting/. In my own experience I was able to harvest some losses but because the market has been doing so well the impact has not been huge.

    Maybe when I have some time I will add a comparison of tax loss harvesting between the different robo advisors but it should perform very similarly across the different platforms that offer it (Acorns does not). I want to first add a comparison of total cost (ETF fees + roboadvisor fees) and more robo-advisors, such as Schwab Intelligent Portfolios, to the chart.


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