Ok, so I'm trying to consolidate investment accounts and I'm struggling with whether I should park my money in vanguard or betterment. Vanguard has the lowest fees but you would have to manually tax loss harvest during downturns which means pulling out of a fund for 31 days. Betterment seems to harvest losses from the fund itself so you don't have to do it manually, and they seem to even harvest losses if the fund grows from my understanding.
So assuming betterment gets you 3k of losses a year, that's 750 in savings at 25% tax. This exceeds the cost of betterment's .25% fee up to a 300k portfolio. At that point, the fees outstrip the 750 from tax loss harvesting. Is my thought process correct on this. Now, the biggest disadvantage I see with betterment is not being able to lock in gains via a backdoor roth during retirement (and thus paying 0 taxes on that money) - are all these assumptions correct?
Submitted January 18, 2017 at 10:35AM by Berzurker http://ift.tt/2k02Ovm
