Hi everyone, in lieu of what’s going on, I have a TLH question if you anyone can shed light on it. I have been going back and forth on this for a bit now, but especially after what’s been happening I thought I would ask.
I use Betterment as my platform for basically everything—checking, HYSA, investing account, Roth IRA. I just happen to like it that way—keeps me invested on a regular basis for DCA purposes. I am 24 y/o and would like to continue investing on a recurring basis. Nevertheless they have TLH, but for my tax bracket which is 12% ($62K/yr salary), this recommendation to not turn TLH on appears:
“TLH+ is not usually beneficial for individuals in your federal tax bracket of 12%. Once TLH+ is turned on (1) Avoid trading in any of the ETFs in the Betterment portfolio in other accounts. (2) Turn it off if you plan on liquidating the majority of your taxable account in under a year. Be aware of your portfolio strategies. Electing different portfolio strategies for multiple goals may reduce opportunities for Tax Loss Harvesting.”
So because of my salary and 12% tax bracket, they do not recommend TLH. Do I abide by this or turn it on regardless? Is there harm to having TLH on for me specifically?
Thank you very much!