I guess my issue is a lack of knowledge about what exactly Betterment does to achieve this.
My company has a 401K which I max out. This is done in Vanguard.
Apart from that I contribute to my Roth IRA 5,5K every year.
I have my Roth IRA in Betterment. (90 stock 10 bond)
I also have an individual taxable account in Betterment.
So far so good.
Now, when I try to set the Tax Loss Harvesting, it is asking me if I have overlapping securities outside Betterment.
Does it mean that since Betterment invests in Vanguard and my 401K is in Vanguard too, I have overlapping securities and I cannot set up the Tax Loss Harvesting?
What can happen if I ignore it and I activate the Tax Loss Harvesting?
I'm pretty new on this, any reading recommendations are welcome too.
My 401K has 20K and my Roth IRA 17,5K and my taxable investment account 4K