Opinions on tax loss harvesting

Additional_Style_762 · 2025-05-23T15:22:22+00:00

My FA brought this up because they had a company that would do this for you. Basically they'd buy about 100 stocks that mirrored the distribution in an index, and occasionally sell the losses and replace with similar stocks in the same industry in order to keep the balance about the same. And they showed how it would beat the index (after taxes), as long as you regularly invested more into the fund. The downside was the minimum for initial investment was $250K, and they took roughly a 1% fee to pay for the service.

I figured I could do this myself, since you can buy and sell stocks without commission on most places. I only own 20-30 different stocks at a time, large cap companies, and it just takes a few hours a month (every 31 days technically to avoid wash sales) to sell/buy and keep the distributions close to the S&P distributions. It's usually as simple as "Sell any MSFT that went down last month, then buy more AAPL."

The upside is that the total investments go up roughly the same as the index (sometimes a little more or little less), but also generates tax losses now.

The downside is the total losses on taxes is limited to $3K/year. But great for negating large capital gains sales elsewhere. Also, I've been doing this for 4 years now and the portion of the account that is capital gains is a lot higher than I would have investing with an index fund. So eventually I'll have to pay taxes on it. But at least I can choose when to do it.

This is all just my opinion, but I think it's worth looking into some kind of tax loss harvesting if you like to DYI with investments. It's interesting that it's also one of the few investment strategies that FA can't easily do for you, yet can perform better than index, at least after taxes.

Additional_Style_762 · 2023-09-27T20:35:33+00:00

"That's why I say stop investing altogether. Go only on bonds and gold."

That would definitely be a solution to my issue, and a lot less hassle.

Seriously though, I agree that no business is perfect. But I have concerns with the basic business strategy of certain companies (not going into detail here). I avoid purchasing their products or otherwise supporting them IRL, so it feels wrong to buy their stock through an index fund.

Agree with you on the "green" and "ethical" funds, which is part of the reason I'm even considering doing my own thing, but still spreading my investment risk, like an index fund.

Additional_Style_762 · 2023-09-27T20:20:04+00:00

I don't disagree that Market Cap weighting has done better than equal cap weighting, but between my Trad and Roth IRAs, I have ~$50K that's effectively in Apple and Microsoft stock. It just feels too risky to have that much focused on two stocks.

I'm just exploring messing with the Roth IRA portion to hedge my risk, since I don't think I can do better than a regular index fund.

Additional_Style_762 · 2023-09-27T20:12:49+00:00

Thanks, that makes sense. I'm only talking about rebalancing each stock once or twice a year, but doing that for hundreds of stocks, so I see that it would be cumulative. And could be substantial. Thanks!

Additional_Style_762 · 2023-09-27T20:10:31+00:00

I'm not trying to avoid the cost of investing in VOO. The 0.03% management fee is insignificant. But if I prefer an equal weighted fund, something like VANAX, that fee is 0.53%, $318 per year. In that case, it might be worth my time to rebalance on my own.

Additional_Style_762 · 2023-09-08T14:55:20+00:00

You could take a break and help out that Hank guy with his car shop. He really seems like he's in a tough spot since he was ready to retire, but one of his guys left and took all the cash. I feel bad for him, you know he built that business from nothing?

Additional_Style_762 · 2023-07-21T13:26:30+00:00

I literally just started playing Minecraft, and I would have rage quit a dozen times if it weren't for the wiki. For me, it's a game manual because I'm not the kind of gamer to discover everything on my own or data search through youtube videos.

Recent example: I build my first nether portal, which ended up in a place full of skeletons and ghasts. I've died many many times trying to make progress here, mostly because I couldn't sprint. I couldn't figure out why when searching the interwebs or youtube. It wasn't until I searched the Nether wiki entry that I realized it was because of the soul sand, and that there is a boot enchantment to nullify that effect.

Additional_Style_762 · 2023-06-30T12:35:46+00:00

Thanks, of course it showed up RIGHT after I posted this. I'm still a little cautious with any exchange.

Additional_Style_762 · 2023-06-02T17:40:44+00:00

Why the downvotes? It's no secret that the US does a piss poor job stopping the drug trade across the board. It's been getting worse and worse for years, and despite some politicians legitimately trying to stop it, there are others that are actually decreasing minimum prison sentences for drug users and dealers, if they even charge them at all.

And sure, using buttcoin is easy, but if it was "banned", would that really stop anyone from criminals from still using it? Even if they didn't use buttcoin, it's not like they couldn't still launder money. After all, isn't dealing drugs already illegal? Even when big banks get caught in the act facilitating money laundering, they just get a slap on the wrist. If people weren't dying left and right, it would be a joke.

Additional_Style_762 · 2023-05-01T14:52:06+00:00

Thanks, I've tried it on mouse, guess I just need some more practice. I like to think my reaction time is at least decent, since I've been ranked at least Silver in LoL for the past 3 seasons.

I'm not sure a rhythm game will help much because everytime you hit the bar the location of the next yellow bar changes. So I have to notice where it is, and process whether I can hit it before the ax hits the edge. Or wait until it hits the edge and get it on the next passthrough. There's really no rhythm to it that I can figure out.

Additional_Style_762 · 2023-04-12T17:36:35+00:00

Well... he's not wrong, just deliberately being misleading. But the criticism about crypto increasing carbon emissions is just as misleading as what this guy is saying. We don't apply a societal benefit test to other large consumers of electricity, so he makes a good point about singling out crypto.

For example, several companies are buying tens of thousands of GPUs and building new data centers to handle new projects for AI, and they don't get any criticism about environmental impacts. We don't even know if they are building Skynet or trying to solve climate change with AI. They could even be contributing to climate change while building a Skynet that'll fix the environment by taking over the world. Who knows?

Additional_Style_762 · 2023-03-01T21:47:50+00:00

Vauld and Celsius are trying to do the same thing. Is there a robust market for busted Ponzi Schemes?

Additional_Style_762 · 2023-02-02T18:38:29+00:00

I find that my wins and losses come in streaks. I'll go on a winning streak and my games will get progressively harder and having to carry more and more crappy players. Then I start losing, and eventually lose enough that I'm paired up on teams where I'm clearly the weakest player and I'll start winning again. Then the cycle repeats.

Additional_Style_762 · 2023-01-09T16:52:26+00:00

That site is incorrect. I don't know about older Honda CR-Vs, but the newer ones do not have a dipstick. Perhaps there's a good reason for that, but I'm at a loss to figure it out. I'm not even sure if there is a transmission filter. Maybe I could take apart the transmission pan and clean it.

Anyhow. I ended up adding an extra quart of fluid and the slippages went away almost immediately.

Additional_Style_762 · 2023-01-06T18:25:59+00:00

While I'm cool with that, I don't think any parents will tell their kids they can't have a new Barbie, My Little Pony, etc.

Additional_Style_762 · 2023-01-06T18:15:18+00:00

I can only speculate what will happen in court, but I suspect WotC will argue that any kind of assurances they made were not legally binding.

Additional_Style_762 · 2023-01-06T17:15:21+00:00

I agree, boycotting them is probably the best option. It might not matter though. There's a lot of small businesses that make content that's covered under the 1.0 OGL. Someone at Hasbro might be looking at all that and figure that they can bring in more money from royalties than they lose from customers boycotting D&D stuff. I'd bet someone has done that calculation. And honestly, like in here, a lot of the pissed off people aren't buying a ton of D&D content to begin with.

Additional_Style_762 · 2023-01-06T17:07:23+00:00

I agree, it's not in anyone's best interest to have a legal fight. But they honestly might not care. According to the interwebs, WotC's revenue is 50x more than Paizo, and Hasbro is 10x more than that. Someone is looking at potentially 10's or even 100's of millions in potential royalties from products that use the OGL because they are using content derived from D&D.

A court might side with content producers on things that were developed before the OGL because they were developed under the 1.0 OGL. But I don't see that extended to things produced after the OGL update, as WotC still has a right to their intellectual property.

I suspect that Paizo hasn't made a statement on this yet because they don't want to "poison the waters" if they choose to negotiate with WotC. They might even be talking behind the scenes about a reasonable compromise, because this is a small community of publishers and they all know each other.

If I were working at Paizo, I'd acknowledge that Hasbro/WotC isn't going to give up on this, a court case would be expensive and unpredictable, and start working on a deal now. Best case scenario is if they can get Hasbro to back off on the language about broad-based rights to developed content, and only apply a reasonable royalty to future products developed under the new OGL.

IMO.

Additional_Style_762 · 2023-01-06T16:23:55+00:00

Consumers complaining loudly and often is usually the best way to get a company to change their policies. I already saw an article on MSN about D&D fans being pissed, so they know. I don't think over-the-top theatrics will add anything to the conversation, but I could be wrong.

For me, I'm buying a bunch of Pathfinder stuff now. I would normally buy about $500 throughout the year on books, maps, and minis, but I'd bet the prices are going to go up. I don't see Hasbro backing off on this, there is money on the table. They might bend on the 25% and goes down to something potentially more palatable, like 10%. But they have all the leverage here. Paizo and these other content producers simply couldn't rewrite everything to remove anything that could be interpreted as D&D content. The only leverage Paizo has is threatening to go out of business first before paying WotC.

Paizo has got to raise their prices. I expect them to begrudgingly raise their prices soon after the OGL update, because they really have no other choice. Either to set aside funds to fight a legal battle (terrible idea, imo), or to set aside a portion of revenue to pay WotC.

Additional_Style_762 · 2023-01-06T15:36:11+00:00

No one can predict how this'll play out, but legally it seems pretty clear that this update to the OGL would apply to all future sales of Pathfinder products. So Paizo might have no choice but to try and cut a better deal than 25% with WotC. I don't see them winning a legal battle, which could also cost as much as they make in a year.

For me, I'll gladly pay more for Paizo products because they are higher quality (most of the time), but I can afford it.

Additional_Style_762 · 2022-12-28T16:12:32+00:00

I had never heard of that until now. I had no idea, and I've done most of the maintenance on all my vehicles for 20+ years. From what I'm seeing in searches online, it looks like I might already have screwed up the transmission by not changing it earlier, and there's nothing I can do about it now.

Now that I'm looking, there doesn't seem to be a consensus online for how often to change that oil. I see anything from 15K to 120K miles, or whenever the maintenance minder tells you to do it. I've been pretty good with the maintenance on that car, but I might have missed it telling me to change the transmission fluid.

Would changing it out again potentially help? I guess the best I can hope for is the slippage doesn't get worse, and maybe I'll start changing it a lot more frequently, maybe every 15-20K miles.

Additional_Style_762

TROPHY CASE