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Post by Deleted on May 24, 2022 9:33:33 GMT
Decided I will sell FEMKX in my taxable, book the capital loss. Then add to IEMG and VSS, and start a position in EMXC. That will finish FEMKX and get the surprises out of my taxable account.
For FIGRX - will sell part and add to VEA, EWU, and VGK. That gets rid of about 2/3 of it from taxable.
Lesson here is, as Chang says, for tax efficiency, limit active funds in taxable.
HOWEVER - I do wonder if I am over-reacting. From looking at distribution histories for FEMKX anf FIGRX - they were MUCH higher than usual - IOW maybe I won't get hammered this year. Thoughts? Not real familiar with the inner workings of active funds. Thanks!
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Post by chang on May 24, 2022 9:45:33 GMT
For obvious reasons I’m not expecting big CG distributions this year like last year. But over the long term (next 10-20 years) the tax hits will continue … and add up.
I believe the reason that people are suggesting making tax-favorable moves now is not in anticipation of big distributions later this year, but rather simply to book losses to offset gains later.
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Post by ignatz on May 24, 2022 10:20:45 GMT
For FEMKX - I thought about IEMG and EMXC in my taxable Does anyone suggest any other ETFs? Does anyone see any tax surprises from these etfs??
The last I checked, EEM was a near clone of IEMG. Probably a coin flip.
Mildly interested in emerging ex-China, but wonder how useful that distinction is considering China influence worldwide and relatively short history of ex-China ETFs.
There's little difference between broad emerging and emerging ex-China prior to about a year ago.
Not that anyone here would dare jump on a bandwagon. Follow a trend? Sure. You do understand the distinction, don't you?
Similarly, there's little long term difference between IEMG and EEMA.
When they raid the house, do they REALLY take all the girls? Sooner or later.
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Post by anovice on May 24, 2022 19:15:00 GMT
Decided I will sell FEMKX in my taxable, book the capital loss. Then add to IEMG and VSS, and start a position in EMXC. That will finish FEMKX and get the surprises out of my taxable account. For FIGRX - will sell part and add to VEA, EWU, and VGK. That gets rid of about 2/3 of it from taxable. Lesson here is, as Chang says, for tax efficiency, limit active funds in taxable. HOWEVER - I do wonder if I am over-reacting. From looking at distribution histories for FEMKX anf FIGRX - they were MUCH higher than usual - IOW maybe I won't get hammered this year. Thoughts? Not real familiar with the inner workings of active funds. Thanks! I do not think that you are over-reacting. If you harvesting a significant amount of losses, you could "gamble" on an actively managed fund in your taxable account that throws off high capital gain distributions, as you will have the losses to offset the capital gains. But when you use up the losses, you still own the tax-inefficient fund in your taxable account. I think a better approach is put index funds and ETFs in your taxable account, not worry about large capital gain distributions, and when you want to sell one of those index funds or ETFs, you will have the losses to offset the gains. "New Report finds almost 80% of active fund managers are falling behind the major indexes" www.cnbc.com/2022/03/27/new-report-finds-almost-80percent-of-active-fund-managers-are-falling-behind.html
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Post by Deleted on May 24, 2022 20:23:39 GMT
I swapped a chunk of FEMK for IEMG today. Slowly harvesting away. Anovice - I think I agree. I decided to see how the active fared vs the index. I am sure this is not the best year to judge, but that's how it fell.
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