Will Betterment automatic tax loss harvesting ever be worth it for me?

[browne497]

According to Betterment, the automatic tax loss harvesting feature isn't worth it for me at the moment given my low taxable income. Since I'm in the military, only a portion of my actual income is taxable. It's currently about $48-49K a year. At what tax bracket does this feature actually become worth it? Am I better off just moving my money to Vanguard for the lower fees and just throwing everything into VTSAX? If more info is needed to answer this, feel free to let me know. Thank you.

[MustacheAndaHalf]

If the stock market gains 10%/year, that means doubing roughly every 7 years.  Once your stocks/ETFs/funds have doubled, even a -50% drop won't incur capitali losses.  Over time, most of your money simply can't benefit from tax loss harvesting.  So you're paying their 0.35% fee on your entire portfolio, but only the last few years have any potential benefit from tax loss harvesting.  So a tiny fraction benefits, and you pay their fee on the entire portfolio.  Not worth it in my view.

[lifeandlimb]

Thanks for posting this. I've noticed this happening to me to and was wondering how to ask about it.