Avoiding Wash Sales

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wtfire
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Joined: Sun Aug 05, 2018 2:45 pm

Avoiding Wash Sales

Post by wtfire » Wed Mar 13, 2019 8:08 pm

I have automatic monthly contribution to my retirement account with VTSAX and VGTSX. On my brokerage account, I am thinking to buy some Vanguard Large-Cap ETF (VV) or Vanguard S&P 500 ETF (VOO) whenever I have extra money in order to avoid wash sale in the future when I need to sell them. Does my thinking make sense?

livesoft
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Re: Avoiding Wash Sales

Post by livesoft » Wed Mar 13, 2019 8:20 pm

Some folks do that, so it can make sense.
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smarcus3
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Re: Avoiding Wash Sales

Post by smarcus3 » Wed Mar 13, 2019 8:34 pm

If you're just buying what's the concern with a wash sale as you're not selling?
This is my personal opinion. I'm an engineer not a financial advisor.

Topic Author
wtfire
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Re: Avoiding Wash Sales

Post by wtfire » Wed Mar 13, 2019 9:57 pm

I just want to plan ahead and avoid the hassle in case I need to sell in the future.

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smarcus3
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Re: Avoiding Wash Sales

Post by smarcus3 » Wed Mar 13, 2019 10:39 pm

Gotcha. I personally wouldn't worry about it as you can always get around it if you could do tax loss harvesting at that time. Simplifying your holdings is a nice plus.
This is my personal opinion. I'm an engineer not a financial advisor.

NMBob
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Re: Avoiding Wash Sales

Post by NMBob » Wed Mar 13, 2019 10:54 pm

makes sense to me. But just remember, every time you make something idiot proof, they make a better idiot!!

rkhusky
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Re: Avoiding Wash Sales

Post by rkhusky » Thu Mar 14, 2019 6:54 am

wtfire wrote:
Wed Mar 13, 2019 9:57 pm
I just want to plan ahead and avoid the hassle in case I need to sell in the future.
Sounds like a good plan. I usually advise people to keep different funds in their taxable accounts than their tax-advantaged accounts if they are hoping to TLH, in order to avoid potential mistakes or the hassles of rejiggering their portfolio.

You should also create a list of potential TLH partners for whatever you decide to put in your taxable account.

3-20Characters
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Re: Avoiding Wash Sales

Post by 3-20Characters » Thu Mar 14, 2019 7:01 am

rkhusky wrote:
Thu Mar 14, 2019 6:54 am
wtfire wrote:
Wed Mar 13, 2019 9:57 pm
I just want to plan ahead and avoid the hassle in case I need to sell in the future.
Sounds like a good plan. I usually advise people to keep different funds in their taxable accounts than their tax-advantaged accounts if they are hoping to TLH, in order to avoid potential mistakes or the hassles of rejiggering their portfolio.

You should also create a list of potential TLH partners for whatever you decide to put in your taxable account.
Exactly my thinking and practice.

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