At the end of last year, I wrote a post about selling funds at a loss and replacing them with other funds in the same fund categories to write off the loss against my taxes.
In that post I noted that there was plenty time to wait to do this if you were going to get socked with a fee for holding the fund for less than 3 months.
Specifically I asked:
"You think the markets will rally 40% in the next 3 months?"
In the last 5 months, one fund I own is up over 70%.
It is still down over 12% since I purchased it, but at this rate, it might not be for long. While solid gains are good, it is possible most of the losses I see in my brokerage right now won't be around much longer.
So if I want to ensure that I have loses to offset my tax burden this year, I need to sell some funds. Of course, the markets could tank again, but I will not be any more or less invested after doing this so my risk will remain the same. If markets tank, I'll be able to sell the new funds at a loss down the road and off set more taxes.
I like the categories I am invested in, so I will only sell a fund when it is at a loss and I can find a fund in the same category, that I like as much or more.
It must have equal or lower fees and fund turnover, must have solid long term performance relative to its peers, and must be a no load, no fee fund available through Etrade.
I'll go through one fund at a time and see what I can find in the next few days.