Thanks. My priority is figuring out my allocation first and then digging more into tax lost harvesting on my own (since SIP did it for me before). I've screenshotted your comment to come back to when I'm ready.Then I think your best approach is to figure out which funds you have are "good enough" that you can keep them, and sell out of the rest.Yes, still in the accumulation phase. My concern with just letting it ride was that the brokerage has quite a bit of money in it (~$1M) and I put in ~$10k per month, so it takes awhile to actually move the needle.You're still contributing/in the accumulation phase, right?
In that case, just turn off auto-reinvesting, leave these alone, and direct all new investing dollars (including dividends) towards the 3-Fund portfolio you'd like to have in whatever AA you prefer. I'd prefer to use the capital losses to offset your income while you're working (rather than capital gains here), and just gradually climb to the AA/type of portfolio you want with new money, and leave these old funds (which, even at a 0.39 ER, aren't that bad) alone.
Thanks for the reality check on the ER.
One factor to keep in mind is tax-loss harvesting (or even tax-gain harvesting) going forward. If you have a old fund in the Schwab designed portfolio that is a good tax-loss/tax-gain harvesting match for one of the funds you hope to simplify into, that'd be a good thing as you could use the old fund as a pair with the new one to avoid wash sale rules, etc. For instance, in taxable I have VTHR-VTI as US total stock funds, and VXUS-VEU as international. If I want to tax loss harvest from VTI, for instance, I can switch from VTI contributions to making the same contribution to VTHR, make sure a month+ has passed since my last VTI contribution, and then sell the VTI (realizing the taxable loss) and roll the money immediately into VTHR.
You may be able to do the same.
Statistics: Posted by unencumbered_sailor — Thu Aug 15, 2024 12:35 pm — Replies 13 — Views 410