The Trade Off of Simple Versus Tax Loss Harvesting

In our firm, we actually like to pay dividends to cash and then rebalance the cash back into the portfolios. It makes it easier to keep portfolios balanced within tolerance bands. If you can choose what to buy into it with everything reinvested, you can't use the dividend season or the dividend payouts as an opportunity to keep the portfolio balanced. So that's our preference. But if he really wanted simple, he could have one target date fund or two ETFs, but there'd be less tax loss harvesting opportunity.

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