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Can I do tax-loss harvesting myself?

Yes, although there are some significant complexities. You will need to track lot-level cost basis, identify alternate securities that are not substantially identical, but that correspond with your investment goals, periodically review your investment portfolio, and carefully observe the wash sale rule (even as it relates to rebalancing). Many high-net-worth investors look to their brokers or investment advisors to harvest tax losses, but typically only at year-end.

Wealthfront has built a sophisticated, algorithmic tax-loss harvesting service that checks client investment portfolios continuously and unemotionally. As a Silicon Valley technology company, we apply computational models where traditional financial organizations apply people. Software leads to a more accurate and lower cost solution.

 

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