TAX-SMART INVESTING, EVERY TRADING DAY
Advizmo checks your portfolio every trading day for losses that can lower your taxes. When you sell, it picks the shares that work best for your tax bill. You don’t have to do anything.¹
HARVESTING
Sells investments that are down and swaps in a similar one, so you stay invested.
SMART SELLING
Every sale picks which shares to sell for a better tax outcome.
3-ETF ROTATION
Three similar funds per holding, so a harvest doesn’t trip a wash sale.
DIRECT INDEXING
Own the stocks inside an index and harvest losses stock by stock.
Investing involves risk, including loss of principal. Not tax advice.
Demo account. Figures shown for illustrative purposes only.
MOST DIY INVESTORS
Once a year
Check for losses in December, if they remember. By then, a dip from March may have already recovered.
ADVIZMO
Every trading day
We look for losses worth harvesting every day the market is open, so short dips don’t slip by.
TAX-LOSS HARVESTING
When an investment drops below what you paid, selling it locks in the loss for tax purposes. Advizmo buys a similar fund right away so your money stays in the market.
1
We spot the loss.
Every trading day we compare what you paid for each batch of shares to what it’s worth now.
2
We sell and swap.
We sell the shares that are down and buy a similar fund the same day. You stay invested the whole time.
3
The loss offsets your gains.
Harvested losses offset capital gains. Up to $3,000 a year beyond that can offset regular income, and the rest carries forward.
ETFS OR DIRECT INDEXING
Same daily checks, same smart selling. The difference is how many places a loss can hide.
ANY BALANCE
ETF portfolio
You own a few low-cost funds. When a whole fund is down from what you paid, we harvest it and rotate to a similar fund.
Simple, low cost, no minimum
Harvests when a fund drops
3-ETF rotation for each holding
BALANCES OF $5,000+
Direct indexing
Instead of one fund, you own the individual stocks in it. Even in a year the index is up, some stocks are down, and each one can be harvested on its own.
Hundreds of chances to harvest instead of a few
Can find losses when the market is up
Tracks the index closely
THE 3-ETF ROTATION
If you buy back the same or a substantially identical investment within 30 days before or after selling at a loss, the IRS disallows the loss. That’s a wash sale. So each part of your portfolio has three similar ETFs that track different indexes.
FUND A
VTI
Tracks the CRSP U.S. Total Market Index
FUND B
ITOT
Tracks the S&P Total Market Index
FUND C
SCHB
Tracks the Dow Jones U.S. Broad Stock Market Index
Example funds for U.S. stocks. Actual funds vary by portfolio.
Why two isn’t enough.
With only two funds, a second drop inside 30 days leaves nowhere to go. A third fund keeps the next harvest open.
New deposits follow the rotation.
After a harvest, new money goes into the fund that won’t undo the loss, not back into the one you just sold.
Same exposure throughout.
All three funds hold a broad slice of the same market, so your mix stays on target while the tax work happens.
INVEST OFTEN
More deposits. More chances to harvest.
Advizmo invests idle cash as soon as it’s there, often after every paycheck. Each deposit buys shares at a different price, and each batch of shares is tracked on its own.
So even when your position is up overall, some batches can be down. Those can be harvested. One lump sum a year gives you one price and far fewer chances.
$2,500 invested on four paydays
Price today $104
BOUGHT
PRICE PAID
GAIN OR LOSS
Jan 3
$100
+$100
Feb 3
$110
-$136 harvest
Mar 3
$96
+$208
Apr 3
$108
-$93 harvest
Whole position
+$79
Your position is up $79. Two batches are still down $229 you can harvest.
Hypothetical example for illustration only. Not a projection of any Advizmo account.
TAX-OPTIMIZED SELLING
Withdrawals, bill pull-backs, and rebalancing all mean selling. Most brokerages sell your oldest shares first by default. Advizmo works through each batch to find the lowest tax bill.
FIRST
Shares at a loss.
Selling these creates a loss instead of a taxable gain.
THEN
Highest cost first.
Shares bought at a higher price have smaller gains to tax.
AND
Long-term over short-term.
Gains on shares held over a year are usually taxed at a lower rate.
ALWAYS
Rebalance with new cash.
New deposits go to whatever is underweight, so we sell less to stay on target.
Tax work, done every trading day.
All included in the 0.25% advisory fee. No extra charge for harvesting.
$5/mo, or $50/yr. Waived once your account balance reaches $1,000. 0.25% annual advisory fee applies separately to your entire account balance, including cash.
¹ Tax-loss harvesting defers tax by lowering your cost basis. Part of the benefit can be permanent when losses offset income taxed at a higher rate than the future gain. Results depend on your circumstances. Not tax advice. Tax-loss harvesting and tax-optimized selling do not guarantee a profit or protect against a loss. The 3-ETF rotation is designed to reduce the chance of a wash sale between your own Advizmo holdings. Wash sale outcomes also depend on transactions in accounts Advizmo does not manage, including IRAs and accounts held by a spouse. Funds selected to track different indexes may still be considered substantially identical in some cases. Direct indexing involves more holdings and may track its index less closely than an index fund. Investing involves risk, including loss of principal. Selling can realize taxable gains as well as losses.