Gain Harvesting and Repurchase

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Gain Harvesting and Repurchase

Postby rkabra101 » Thu Dec 27, 2012 12:22 pm

I need to liquidate my taxable mutual funds positions and repurchase immediately (to realize gains in 2012 as opposed to 2013 [comments related to proposed legislation removed by admin LadyGeek]).

Any idea how can I make repurchase once I place order as I don't want to be out of the market even for a day but not sure how to do it at Vanguard.

thank you.
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Re: Gain Harvesting and Repurchase

Postby LadyGeek » Thu Dec 27, 2012 2:41 pm

Welcome! I understand your concerns about 2013 and strongly recommend reading this post: The "Fiscal Cliff." What to do?

(Please avoid political dissusions. See: Future Tax Rate Questions are Off Topic Until Congress Acts)
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Re: Gain Harvesting and Repurchase

Postby sscritic » Thu Dec 27, 2012 2:53 pm

You might be a little late. Did you just get the news? How fast is your postman?

Read the wiki on Vanguard's frequent trading policy.
If, for some reason, you wish to buy back into a fund after selling it, you do not need to wait 60 days. There are two easy ways to do it. They are clearly spelled out in Vanguard's policy. Both introduce a short delay into the process of placing the order, and one might surmise that such a delay is enough to discourage the investors who are the target of the frequent trading policy.

http://www.bogleheads.org/wiki/Frequent_trading_policy

I mentioned your postman because if you had sent a letter last week to sell, you could buy back on the web today. If your letter instructions were executed yesterday, that means you would have been out of your funds for one day. But that would have required planning on your part. I don't think you can do a zero day out and back, so you may be asking for the impossible.
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Re: Gain Harvesting and Repurchase

Postby baw703916 » Thu Dec 27, 2012 3:13 pm

Just move from TSM to a combination of 500 Index and Extended Market. From Total International to a combination of large FTSE and small FTSE.
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