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Avoiding Wash Sales

Posted: Wed Mar 13, 2019 8:08 pm
by wtfire
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?

Re: Avoiding Wash Sales

Posted: Wed Mar 13, 2019 8:20 pm
by livesoft
Some folks do that, so it can make sense.

Re: Avoiding Wash Sales

Posted: Wed Mar 13, 2019 8:34 pm
by smarcus3
If you're just buying what's the concern with a wash sale as you're not selling?

Re: Avoiding Wash Sales

Posted: Wed Mar 13, 2019 9:57 pm
by wtfire
I just want to plan ahead and avoid the hassle in case I need to sell in the future.

Re: Avoiding Wash Sales

Posted: Wed Mar 13, 2019 10:39 pm
by smarcus3
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.

Re: Avoiding Wash Sales

Posted: Wed Mar 13, 2019 10:54 pm
by NMBob
makes sense to me. But just remember, every time you make something idiot proof, they make a better idiot!!

Re: Avoiding Wash Sales

Posted: Thu Mar 14, 2019 6:54 am
by rkhusky
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.

Re: Avoiding Wash Sales

Posted: Thu Mar 14, 2019 7:01 am
by 3-20Characters
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.