I would love to use a robo advisor to take advantage of automated tax loss harvesting. I'd probably also diversify out of just US stocks as it would be easy with the robo advisor. I've been looking for a place where you can set your own target percentages for each asset. I would keep half my portfolio myself for the Cash and Gold portion. The other half I would give to the robo-advisor and let it target 50% stocks and 50% long-term bonds. The problem is that every such product will not let you have control over the investments to that degree. For example, at Betterment, you can drag a slider to select how much you want allocated to stocks, but you can further fine tune the holdings. It will put a certain amount in TIPS no matter what you do.
Does anyone know of a Robo that lends itself to the PP? Has anyone done something along these lines already?
Thanks!
Robo Advisors
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- buddtholomew
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Re: Robo Advisors
It is highly unlikely that the PP will require re-balancing often enough to warrant a rob-advisor (spellcheck changed to rob advisor so I'm going to leave it). 15/35 re-balancing bands are triggered on average every 3 years so reasonable to do this on your own. Also, tax loss harvesting is simple enough as well and if FIFO is in the latest tax bill many will lose this benefit as initial purchases are likely to have a low cost basis (if I interpret FIFO in bill to mean that it applies to capital losses as well).