TLH Advice

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Topic Author
sjwoo
Posts: 174
Joined: Mon Jan 20, 2014 10:41 am

TLH Advice

Post by sjwoo »

I'd like to tax loss harvest a few of my downers -- here's my plan:

AEO -> GPS
BIV -> IEF
MMM -> HON
VCSH -> SCHJ
VIGI -> IGRO
VXUS -> IXUS

Nothing seems out of whack, right? I know I'm taking some chance with AEO/GPS and MMM/HON since they are individual companies, but I don't own that much of either so it's not a huge deal if something unforeseen/unfortunate happens with those companies in the interim.

Planning to sell on Monday, 10/3. If I wait until 11/4 to sell and rebuy my previous holdings, I'll be safe from the wash rule, right?

Thanks...
User avatar
arcticpineapplecorp.
Posts: 15014
Joined: Tue Mar 06, 2012 8:22 pm

Re: TLH Advice

Post by arcticpineapplecorp. »

yes that all seems fine.

i wouldn't worry about buying back in 31 days though; that's the point of having substitution funds, so they're close enough and you can just hold them instead of the original funds. If you buy back in 31 days you could be selling funds/stocks that have incurred gains over that 31 days and then minimizing the losses you've just generated from the first sales 31 days prior. Why do that if you don't need to? Don't generate gains until/unless you need to (like you're no longer wanting to hold the funds/stocks or you need the money so have no choice but to sell). At that time if you have losses leftover you've carried over, you can still offset gains on stock/funds you actually divest (permanently). my 2cents.
It's hard to accept the truth when the lies were exactly what you wanted to hear. Investing is simple, but not easy. Buy, hold & rebalance low cost index funds & manage taxable events. Asking Portfolio Questions | Wiki
Topic Author
sjwoo
Posts: 174
Joined: Mon Jan 20, 2014 10:41 am

Re: TLH Advice

Post by sjwoo »

Thank you -- you're right, those funds are super similar, though I do like the lower ER for BIV vs. IEF, so I may revert that one. And I'll probably buy back AEO and MMM, as I have a soft spot for those stocks.

Though actually, I may swap out MMM with SWK -- looks like Black and Decker has taken a shellacking lately, so they and 3M are sort of similarly distressed, though for different reasons...
Post Reply