Home › Forums › Financial Markets/Economics › Thoughts on Personalized Index Account
- This topic has 3 replies, 3 voices, and was last updated 1 week, 5 days ago by plm.
May 11, 2023 at 3:19 PM #902189May 16, 2023 at 12:10 PM #902240plmParticipant
Doesn’t seem to be worth management fees just to do some tax loss harvesting. Perhap these funds would be useful to those who do not want to invest in evil companies and still have an index fund.
Tax loss harvesting isn’t that great, I noticed on my brokerage accounts that because of me selling off losers, I have now more tax liability gains then actual gains so it still has to be paid.
Long term gains for me currently is 18.8 rate. When I retire, if I should get 0 for some of the gains and a good portion of it would be at the 15 percent rate which will reduce my taxes. Perhaps that isn’t really tax loss harvesting but averaging your gains to take advantage of progressive tax rates. Kind of the reverse I suppose, now selling the deferred gains earlier than needed to take advantage of low tax rates during retirement.
Unlikely humans can beat the indexes but most likely AI can, I suppose it depends on the cost of all that compute power and the fees that need to be charged. A low cost AI powered fund would be what would interest me.May 23, 2023 at 9:52 AM #902305gzzParticipant
You can basically do this yourself with no fees.
First, remember the SP500 is mostly the SP50 because it is a weighted index. The top 10 companies are 24% of the index, the other 490 split the 76%.
So what you can do is just buy some shares in the top dozen or two companies in the S&P500, and at the end of the year tax harvest some losses and use the cash to buy shares in the largest few companies you don’t own.May 23, 2023 at 11:13 AM #902306plmParticipant
Looked at the stocks I own compared to the top SP500 companies and about 90 percent of my money is in the top 20 so I suppose I’ve been doing all this work and it is bascially a varaiation of the SP500 index fund. Outperformng SP500 because I am mostly in tech so my account usually moves in sync with Nasdaq instead of SP500.
This is an interesting idea, so basically I chose mostly tech stocks and make my own Nasdaq index. So anyone can customize what they want. Be deversified or concentrate on certain sectors.
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