FireDreamer
Dryer sheet wannabe
Hi All
I recently met with my Fidelity private client group advisor where I was introduced to Separately Managed Accounts focused on Tax Loss Harvesting.
Searching the forum, I found the last discussion on this topic from 2017-
https://www.early-retirement.org/fo...-managed-u-s-equity-index-strategy-87330.html
My understanding of this Tax Managed account is that I move cash into this account and fidelity then buys the same individual stocks that are in the target index fund (US or foreign equity index). The fidelity team (computer aided, I'm speculating), then sells stocks at a loss to offset stocks that gain and re-purchase similar stocks in the index to minimize taxes. The net effect is an index fund behavior, but with minimized taxes. The fee associated with this account is 0.3 and 0.4% for US and Foreign respectively.
I'm simply equating this to a mutual fund with a 0.3/0.4% expense ratio with the same performance as the the target index, but with minimal tax impact. Am I missing something?
I'm curious, have others have considered and invested in this approach?
If you have invested in this strategy, what was your experience?
I recently met with my Fidelity private client group advisor where I was introduced to Separately Managed Accounts focused on Tax Loss Harvesting.
Searching the forum, I found the last discussion on this topic from 2017-
https://www.early-retirement.org/fo...-managed-u-s-equity-index-strategy-87330.html
My understanding of this Tax Managed account is that I move cash into this account and fidelity then buys the same individual stocks that are in the target index fund (US or foreign equity index). The fidelity team (computer aided, I'm speculating), then sells stocks at a loss to offset stocks that gain and re-purchase similar stocks in the index to minimize taxes. The net effect is an index fund behavior, but with minimized taxes. The fee associated with this account is 0.3 and 0.4% for US and Foreign respectively.
I'm simply equating this to a mutual fund with a 0.3/0.4% expense ratio with the same performance as the the target index, but with minimal tax impact. Am I missing something?
I'm curious, have others have considered and invested in this approach?
If you have invested in this strategy, what was your experience?