Vanguard - MinTax: a new cost basis method designed to prioritize tax savings

[Go-NoGo]

Received this from Vanguard today:

Vanguard is introducing a new cost basis method designed to prioritize tax savings and save you time. Minimum tax (MinTax) automatically selects shares to sell once you put in a sale order. In the majority of cases, it may help minimize the income tax you'll owe.* It's now available for mutual funds, ETFs (exchange-traded funds), and stocks.

https://investor.vanguard.com/investor-resources-education/taxes/cost-basis-minimum-tax

I already have my portfolio setup to sell by specID, - selecting MinTax will take some of the calculation out of the process. Will have to investigate this a little further.

 

[braumeister]

Schwab has long offered this tax saving technique on sales. Of course, you can still opt to select the lots yourself if you prefer.

 

[yakers]

Don’t see any downside

 

[MarieIG]

Schwab has long offered this tax saving technique on sales. Of course, you can still opt to select the lots yourself if you prefer.

Yes, I used that option at TD Ameritrade last year, when I was looking to tax loss harvest.

 

[orbops]

Unfortunately, this doesn't help me in any of my Rollover & Roth IRAs.

 

[SecondCor521]

Don’t see any downside

It's an easy choice that will probably produce good results in most cases. It can't provide the best result because to do so would require knowledge of your entire tax situation. In some years you might want gains, in others you might want losses.

I'll probably leave my stuff set as specID and then sell with my entire tax picture in mind.