Vanguard Tax Loss Harvesting Program and Service

[cbo111]

Anybody using this service provided to Vanguard PAS customers? I just received a message from Vanguard offering me:
"This service involves selling a security that has experienced a loss and replacing that security with a different holding designed to maintain your asset allocation. Primarily, a tax loss harvesting strategy can add value in the form of reduced income taxes when realized, or harvested, losses are used to lower a tax bill by offsetting realized capital gains and up to $3,000 of ordinary income, based on current tax provisions. Additionally, the strategy may increase after-tax returns where those tax savings are used to purchase additional securities, assuming the additional investments purchased with your tax savings experience compounding growth in the markets over time."

I'm not sure this is something that will provide much of a tax benefit over time. I am not a frequent trader and have not started any drawdown of assets, mainly because we live nicely off of pensions and social security. If anything, it might complicate things when filing my taxes, which right now are very simple TT.

 

[COcheesehead]

Tax loss harvesting can be very beneficial.

 

[38Chevy454]

It's something you can do yourself. You don't have to pay Vanguard or other advisor to tax loss harvest. The tax loss only helps for after tax accounts. You don't get any benefit for pre tax retirement accounts. Tax loss harvesting is a tool that csn save you money.