Author Topic: Tax loss harvesting with Wealthfront and company stock  (Read 397 times)

ukusmustache

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Tax loss harvesting with Wealthfront and company stock
« on: November 02, 2018, 01:29:51 PM »
I use Wealthfront for all my non tax sheltered savings, partly because I like their automatic re balancing, partly because I like their tax-loss harvesting feature. I am not a big fan of their fees, but if the tax-loss harvesting works as well as they claim then it would more than cover the costs. I do not have a really solid understanding of tax loss harvesting though, so to be honest I am not entirely sure how much it is saving me if anything at all.

I have two main questions:

1) Is tax loss harvesting likely to save me money in the long run? Probably this requires a few specifics to answer: I currently earn much more than I expect to after another few years (250k+/year pretax now, will hit FI in less than 5 years at which point I will either RE or change jobs to something that is <100k/year after 5 years, or maybe continue earning 250k+/year indefinitely). I live on around 25k/year and don't see that going above 50k/year ever (in today's dollars).

2) Is Wealthfront implementing the tax loss harvesting correctly including other stock I own? I currently receive quite a lot of stock from the company I work for. For tax reasons, it does not make sense to sell it immediately. However, I am concerned that Wealthfront's tax loss harvesting does not take into account this stock which is not held in Wealthfront.

3) Should I abandon Wealthfront?

ukusmustache

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Re: Tax loss harvesting with Wealthfront and company stock
« Reply #1 on: November 04, 2018, 04:50:18 PM »
bumping in the hope that someone who has some insights on this question sees this thread!