But I feel like if I go down this road, I'm dooming myself to having some combination of VTSAX, VFIAX, and VEXAX in my taxable account forever. Not only is this more stuff to keep track of, but a portfolio with VFIAX and VEXAX in it might need some minor rebalancing once in a while to keep the ratio between them in line with the composition of VTSAX over time, which adds some more complexity.
If the market goes down even further by 30 days from tomorrow, I can do another TLH and get back to 100% VTSAX, which would be ideal. But of course there's no guarantee that will happen. How do people usually deal with this? Is having a bunch of different tickers knocking around in your taxable account an inevitable consequence of doing tax loss harvesting?
Here's my portfolio in case that's relevant:
Emergency funds: $30k, split into $5k in FDRXX, $4k in VMMXX, $21k in a CD (going to move that to VMMXX when it matures next year)
Tax Filing Status: Single
Tax Rate (marginal): 32% federal, 9.3% state (will likely decrease to 24% a few years from now as employer RSUs finish vesting)
Desired asset allocation: 90/10
Desired international allocation: 40% (to mimic Vanguard's target retirement funds)
Current Retirement Assets (about $330k):
8.15% 403(b) (previous employer, at TIAA, 100% Roth):
- 27.52% Vanguard Total Stock Market Index (VTSAX) (0.04%) at Vanguard
- 36.09% 5-year biannually maturing CD ladder, avg yield 2.92%, at Fidelity
18.84% 401(k) (current employer, at Fidelity, currently 15% traditional / 85% roth):
- 8.15% TIAA-CREF S&P 500 Index (TISPX) (0.06%)
9.40% Roth IRA (at Vanguard):
- 1.91% Vanguard Extended Market Index Trust (~VSEMX) (0.04%)
- 16.93% Vanguard Total International Stock Market Index Trust (~VTISX) (0.07%)
Current asset allocation is 63.91% stocks, 36.09% fixed income (CDs). Current international allocation within stocks is 38.96%.
- 1.43% Vanguard Total Stock Market Index (VTSAX) (0.04%)
- 7.97% Vanguard Total International Stock Market Index (VTIAX) (0.11%)
New Annual Contributions, starting this year:
Other available funds (ignoring company stock and high-ER funds):
- $22.1k pre-tax to 401(k)
- $24.5k Roth to 401(k) via mega backdoor
- $5.5k Roth to IRA via backdoor
- Some amount to taxable, depending on how much spare cash I have in the given year. Probably $20k+ per year I would guess.
- TIAA-CREF International Equity Index (TCIEX) (0.06%)
- TIAA-CREF Small-Cap Blend Index (TISBX) (0.06%)
- Vanguard Short-Term Bond Index (VBITX) (0.05%)
- Vanguard 500 Index Trust (~VFFSX) (0.01%)
- Vanguard Total Bond Market Index Trust (~VTBSX) (0.03%)
- Vanguard Target Retirement funds, 2015-2065 and Income (all 0.05%)