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?
