The Mind Money Spectrum Podcast

#79. Tax-Loss Harvesting 101: Sidestep these mistakes with your DIY strategy.

June 15, 2021 Aaron Agte and Trishul Patel Season 2 Episode 27
The Mind Money Spectrum Podcast
#79. Tax-Loss Harvesting 101: Sidestep these mistakes with your DIY strategy.
Show Notes

Step-by-step instructions for implementing your own tax-loss harvesting strategy.

In this episode, Trishul and Aaron try to design an algorithm for a do-it-yourself tax-loss harvesting program. They illustrate the benefits of harvesting with specific equity ETFs. They then debate how often to check for losses and how to maintain asset allocations after realizing a loss. They also propose how to get back to your original portfolio while avoiding wash sales. And if you want to make this all work well, don't forget to track individual tax lots instead of average cost basis.

Episode References

MMS #68. Don't get burned by what you don't know about cost basis.
MMS #69. Uncover the unknown unknowns of cost basis to unlock real savings.
MMS #73. Is direct indexing the future of investing?
Cost Basis: Tracking Your Tax Basis
Investopedia: Cost Basis
Investopedia: What Determines Your Cost Basis
Cost Basis for Real Estate
Investopedia: Bid-Ask Spread
Investopedia: Tax-loss harvesting
Investopedia: Rebalancing
Wash Sale Rule
Vanguard Advisor Alpha

Podcast Description

Welcome to The Mind Money Spectrum Podcast where your hosts Aaron Agte and Trishul Patel go beyond traditional finance questions to help you explore how to use your money to achieve the freedom you want in life. Aaron is a Financial Planner from the Bay Area, and Trishul is a Wealth Manager on the East Coast. For more information about Aaron, check out GraystoneAdvisor.com. And for more information on Trishul check out InvestingForever.com. We thank you all for listening, and stay tuned for our latest episode on our website, MindMoneySpectrum.com.