No. of Recommendations: 5
re: Tax Loss Harvesting
From what I have read, it should give you 1-2% after tax return over the index you chose. Small losses, harvested daily, while remaining fully invested have been shown to add up, just as low interest compounded daily does. Given the uncertainty in the market, I lean towards an approach that lets me benefit from the volatility.
I first heard of Tax Loss Harvesting a long time ago and thought it interesting, especially given the claims about the benefits. An extra 1%-2% would be nice. Then read other takes saying it was just smoke & mirrors.
It seemed kind of silly. If you like the index then you just have to put up with the volatility. If you don't like the index, why would you invest in it?
Upon reading your comment I thought "This calls for spreadsheet man!!!!" So I think I'll whack together a spreadsheet to run a TLH simulation and see what pops out.
