Tax-loss harvesting at THEO

[RetireJapan]

I'm mentioned a few times that THEO does tax-loss harvesting (based on what seems to be happening on my statements, which sometimes show a negative number for capital gains), but do they really?

I don't recall having seen it anywhere in their promotional literature or website.

Does anyone have a definitive answer?

[RetireJapan]

I just asked THEO about this. This was their reply:

「海外のロボアドバイザーでは、Tax-loss harvesting の機能を提供しているものがございますが、
THEOでは、自動での Tax-loss harvesting は行っておりません。

というのも、日本の法制度の下では、節税を目的とした取引については、
税理士のみが行える税理士業務と考えられる可能性があるためです。

そのため、THEOでは、自動で行うことはいたしませんが、お客さまが税理士のアドバイスの下で
弊社に指示をいただいた場合には、実行できるようにしております。」

So they don't automate it based on their interpretation of Japan's tax laws, but can do it if you have advice from a tax advisor. Not really sure what that would entail. Substantially above my pay grade unfortunately.

Also, have to go and change a few things on the RJ website. Drat.

[alejandro]

THEO's website isn't easy to navigate looking for a very specific piece of information: I was wondering whether I could start 積立 of 10K/month then increase it later.

I think they wouldn't stop you from changing/increasing it but I was looking for text that specifically said that, or other info like you can only change the amounts every x months, y times a year, or before the zth of the month.

Any info on the above?

[RetireJapan]

My experience is that you can change as much as you like, unless it's just before the monthly withdrawal...

I'd email them: they tend to reply almost immediately!

[fools_gold]

Bit late here, but maybe you were thinking of WealthNavi. They claim to be the only roboadvisor to do tax-loss harvesting (at least that's what I think they're offering).

https://support.wealthnavi.com/hc/ja/ar ... %E3%81%8B-

[RetireJapan]

Bit late here, but maybe you were thinking of WealthNavi. They claim to be the only roboadvisor to do tax-loss harvesting (at least that's what I think they're offering).

https://support.wealthnavi.com/hc/ja/ar ... %E3%81%8B-

No, I was just confused. Interesting that WealthNavi can offer tax-loss harvesting when THEO claims it wouldn't be legal. Would make them much more attractive, given that the fees are the same...

Having trouble finding the minimum deposit for WN on their site. Do you happen to know it?

[RetireJapan]

It's 300,000 yen

[robster]

Bit late here, but maybe you were thinking of WealthNavi. They claim to be the only roboadvisor to do tax-loss harvesting (at least that's what I think they're offering).

https://support.wealthnavi.com/hc/ja/ar ... %E3%81%8B-

No, I was just confused. Interesting that WealthNavi can offer tax-loss harvesting when THEO claims it wouldn't be legal. Would make them much more attractive, given that the fees are the same...

Having trouble finding the minimum deposit for WN on their site. Do you happen to know it?

A JP language blog I read comparing THEO with Wealth Navi http://ipomechanic.com/2017/04/28/post-28955/ said that WN has patented the tax-loss harvesting function (limited to Robo-Advisors, i guess...?), along with another function which rebalances automatically as you make additional contributions. This may explain THEO's less than convincing explanation as to why they don't do tax-loss harvesting.
It also makes WN appear to have some intrinsic advantages over THEO, even if their website design isn't as cool as THEO.

[RetireJapan]

A JP language blog I read comparing THEO with Wealth Navi http://ipomechanic.com/2017/04/28/post-28955/ said that WN has patented the tax-loss harvesting function (limited to Robo-Advisors, i guess...?), along with another function which rebalances automatically as you make additional contributions. This may explain THEO's less than convincing explanation as to why they don't do tax-loss harvesting.
It also makes WN appear to have some intrinsic advantages over THEO, even if their website design isn't as cool as THEO.

That is really interesting. Tempted to open a WN account in the new year to investigate further

[Rezz]

Not sure if this has been mentioned elsewhere already, but Theo are going to start doing tax "optimising", which seems to basically be tax loss harvesting:

https://news.money-design.com/2019-04-10

This along with the recent news about the "colour palette" changes (fees reducing from 1% to 0.6% in stages depending on how much money you have invested with them) definitely makes them worth a second look I think. I still have my money with them and will be continuing my monthly contributions, convinced by their recent announcements.