Investments — Vanguard Tax Loss Harvest
My financial advisor at Vanguard is recommending that I participate in their Tax Loss Harvesting service. Your thoughts on this new service?
Terry Says
Did you read this article on the Vanguard site:
https://investor.vanguard.com/investor-resources-education/taxes/offset-gains-loss-harvesting
Make sure you understand it thoroughly.
ALSO, remember this applies only to after-tax accounts, and not to IRAs, where all the withdrawals are taxed as ordinary income.
Do you have a lot of stocks with long-term gains, and some with losses? Yes, you can sell to take profits and offset losses, reducing your tax bill on the gains. But your advisor should also be working with your tax consultant to make sure this is either necessary or profitable –and done correctly.
And make sure no commissions are involved — because this is done through the Vanguard brokerage division, and there you will find out that commissions apply. That could be one reason for this advice — a way for your “advisor” to earn commission dollars!!
