Tweet from Vanguard Executive

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jerome99
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Joined: Tue Jan 10, 2012 8:38 am

Tweet from Vanguard Executive

Post by jerome99 » Wed Nov 13, 2013 7:36 am

"When rebalancing within taxable accounts, consider selling assets at a loss or minimal bain to minimize tax impact"

Should much focus be on the above. Seems like good logic, just unsure exactly how and when to execute.

Thanks!

dickenjb
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Location: Philadelphia PA

Re: Tweet from Vanguard Executive

Post by dickenjb » Wed Nov 13, 2013 8:05 am

jerome99 wrote:"When rebalancing within taxable accounts, consider selling assets at a loss or minimal bain to minimize tax impact"

Should much focus be on the above. Seems like good logic, just unsure exactly how and when to execute.

Thanks!
Sounds like good advice, especially if they meant minimal GAIN. Bain Capital is where Romney was CEO.

Read about Tax Loss Harvesting in the wiki for more info.

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bertilak
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Re: Tweet from Vanguard Executive

Post by bertilak » Wed Nov 13, 2013 8:56 am

jerome99 wrote:... unsure exactly how and when to execute.
You execute it when you need the money. The how is to look at all your investments and see which ones will realize the greatest losses. That doesn't mean those are always the ones to sell, just that the tax consequences are one (oftentimes important) thing to take into consideration.

Note that re-balancing to maintain an AA will tend to do just the opposite -- selling high -- causing adverse tax consequences.

Another "when" is if there is a major downturn in the market. In this case you may want to sell one asset and replace it with another different, but similar, asset. Perhaps you would sell several "slices" (mid cap, small cap, REIT, etc.) and buy TSM. Another example: you could sell stock and bond funds and buy a balanced fund. These are "sell low, buy low" transactions that are break-even trades except for the favorable tax treatment. I did this inadvertently near the 2009 bottom when I switched from a big pile of miscellaneous stocks and funds a "Wealth Manager" put me into and greatly simplified my portfolio. This is a form of market timing which is hard to do, but I was lucky.
May neither drought nor rain nor blizzard disturb the joy juice in your gizzard. -- Squire Omar Barker, the Cowboy Poet

grok87
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Re: Tweet from Vanguard Executive

Post by grok87 » Wed Nov 13, 2013 10:10 am

jerome99 wrote:"When rebalancing within taxable accounts, consider selling assets at a loss or minimal bain to minimize tax impact"

Should much focus be on the above. Seems like good logic, just unsure exactly how and when to execute.

Thanks!
How can I sign up for these tweets?
Keep calm and Boglehead on. KCBO.

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danwhite77
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Re: Tweet from Vanguard Executive

Post by danwhite77 » Wed Nov 13, 2013 10:14 am

grok87 wrote:
jerome99 wrote:"When rebalancing within taxable accounts, consider selling assets at a loss or minimal bain to minimize tax impact"

Should much focus be on the above. Seems like good logic, just unsure exactly how and when to execute.

Thanks!
How can I sign up for these tweets?
If you are not yet a twitter user, head to www.twitter.com and sign up

Then follow @Vanguard_Group
"While some mutual fund founders chose to make billions, he chose to make a difference." - Dedication to Jack Bogle in 'The Bogleheads' Guide to Investing'.

grok87
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Re: Tweet from Vanguard Executive

Post by grok87 » Wed Nov 13, 2013 10:18 am

danwhite77 wrote:
grok87 wrote:
jerome99 wrote:"When rebalancing within taxable accounts, consider selling assets at a loss or minimal bain to minimize tax impact"

Should much focus be on the above. Seems like good logic, just unsure exactly how and when to execute.

Thanks!
How can I sign up for these tweets?
If you are not yet a twitter user, head to http://www.twitter.com and sign up

Then follow @Vanguard_Group
Thanks
Keep calm and Boglehead on. KCBO.

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Duckie
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Re: Tweet from Vanguard Executive

Post by Duckie » Wed Nov 13, 2013 6:58 pm

danwhite77 wrote:
grok87 wrote:How can I sign up for these tweets?
If you are not yet a twitter user, head to http://www.twitter.com and sign up

Then follow @Vanguard_Group
Or if you don't want to join Twitter you could bookmark this site to just read (no posting).

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