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REDDIT

Strategies for tax loss harvesting for a DCAing "set and forget" type investor

B
Apr 8, 2025 · 21:57

I tend to follow the conventional boglehead strategy of a simple portfolio structure, DCAing, and setting and forgetting. As a result, I basically never have short-term capital gains. Actually, I've barely ever realized gains at all.

However, recently, for obvious reasons, I've come into some significant harvested losses. (I've been using wealthfront's S&P500 direct portfolio with automatic tax loss harvesting) The amount is big enough that the 3k per year carryover that I can deduct from my income is not going to make much of a dent in it.

I feel like this is suboptimal because I'm not taking advantage of the harvested losses. Ideally, I would take these losses and use them to offset short-term capital gains to get the maximum tax savings, but I have none.

What are some methods of extracting value out of these harvested losses?