Author Topic: best betterment allocation for TLH  (Read 1606 times)

themagicman

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best betterment allocation for TLH
« on: March 13, 2015, 10:25:04 AM »
I have been using betterment for a little while for my taxable account. I was wondering what allocation of stocks and bonds tend to have the most TLH possibilities? Would it be all stock since it is usually the most volatile? Or would have more bonds help because they would provide more of a zig and zag?

goldgrasshopper

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Re: best betterment allocation for TLH
« Reply #1 on: November 01, 2015, 04:58:05 PM »
I have this question as well, though I'm unsure what you mean by "TLH" I can tell you my asset allocation has been aggressive at 90% Stocks and 10% Bonds since January 1st, and I am in the red though its not able timing the market its about time in the market, https://www.betterment.com/resources/investment-strategy/portfolio-management/its-about-time-in-the-market-not-market-timing/

You can check the performance of different Betterment allocations on their website, FYI Betterment's bonds have been performing better than their stocks in the past 1 yr. with a 1.6% spread between 80% bonds vs 80% Stocks.
« Last Edit: November 01, 2015, 05:08:55 PM by goldgrasshopper »

tj

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Re: best betterment allocation for TLH
« Reply #2 on: November 01, 2015, 06:22:20 PM »
I did not want to have any short term treasury bonds so I have 100/0 for my "build wealth" and 41/59 for my "safety net." portfolios 41/59 is the highest amount of bonds you can have without exposure to short term treasuries.


My betterment has yet to re-allocate between bonds and stocks as I only added the safety net a month ago. Ironically the stock/bond mix has more of a % gain the my 100% stock portfolio. I'm considering selling the "safety net" and adding part of it to my 100/0 and hte other part to California tax exempt bonds outside of the Betterment platform.


Interest Compound

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Re: best betterment allocation for TLH
« Reply #3 on: November 01, 2015, 06:41:50 PM »
In case you're thinking about choosing an allocation based on its potential for Tax Loss Harvesting, this is a terrible mistake. Your allocation is the single most important and impactful decision you can make, don't take this lightly. Your allocation should be based on three things:

1. Your willingness to take risk.
2. Your ability to take risk.
3. Your need to take risk.

tj

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Re: best betterment allocation for TLH
« Reply #4 on: November 01, 2015, 06:50:40 PM »
Agreed. It's just a question of what asset classes you want managed by betterment (if any)