Small Things: Betterment Removes Entry Requirement to Tax Loss Harvesting
Late last week while looking through my Betterment account I noticed that I had the ability to turn on automated Tax Loss Harvesting. According to Betterment's policy (from the beginning of account last year) there was a $10,000 minimum account value requirement to enable this feature. As my Betterment account is brand new it does not host anywhere near that amount. Just today I received email confirmation that Betterment has indeed removed the account minimum for Tax Loss Harvesting offering another tool to their investors of all portfolio sizes.
I may go into further detail later pertaining to this change but I have enabled Tax Loss Harvesting on the EAF Betterment portfolio. Will I realize tax benefits from this account? Only time will tell. Personally I'm excited to have the opportunity to utilize a new tool in the investing arsenal. If any tax benefits are realized in the account I will post them along with the performance on the quarterly reports (of which I know I'm behind on the 2015 Q1 report but it will be coming shortly).
If you have been interested in this investing strategy and you have a Betterment account you may want to enable Tax Loss Harvesting. Their announcement email did not detail if they will re-establish a minimum account value in the future so getting in now may be a good idea. I'm operating under the assumption that they will offer this to all of their accounts going forward as a way to entice more investors. I strive to diversify not only the assets that are in the EAF portfolio but also the strategies that are used while managing the diversified assets so this is another unique opportunity to broaden the portfolio strategy and get additional experience with new dimensions of investing.
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