I'm still a new BH and am basically at a point where I am transitioning from AUM to managing everything myself in a smaller fund portfolio according to BH principles. Short of giving a lot of background, or what my current allocations are (since right now they are not important as I plan to change everything around as AUM has been liquidated). My current proposed portfolio of assets (not counting cash on hand and mad money) look like this:
https://preview.redd.it/012adf5a99dg1.png?width=267&format=png&auto=webp&s=6a1ece9a41dde6e955bcd4beef633c1154118533
\*TPI there should be (TIPS).
The non-taxable accounts are 30% of the portfolio and consist of traditional Roth and IRA (one of each for my spouse and I).
I am being told/warned that I need to "avoid wash sales", but am trying to figure out what that means exactly in a portfolio like above. It looks like the concern may not be my initial investments, but when it comes to rebalancing(?) Especially because I am holding SWAGX in both my taxable and taxable accounts(?) *(I am holding it in both BTW because I don't have enough room to fit my 30% bond investment solely in my non-taxable and the TIPS and REIT are less tax efficient and need to remain there).*
For instance, it seems one scenario is if my stocks are outperforming and I need to rebalance. I assume I could sell off some stocks and then also TLH on some of my taxable bonds. But, if my IRAs were doing any sort of re-investment, they could automatically purchase (or I might manually do this if not careful) additional shares of SWAGX. This would make my taxable SWAGX a wash sale.
I've spent most of my time understanding how to do my initial investment goals, but I don't totally understand the scope of rebalancing. What do I need to do in order to avoid this?
One simple solution is simply hold some other bond choice in my taxable other than SWAGX. But I'm concerned there are other scenarios I'm not thinking of.
How much do I need to worry about this right NOW, before I pull the trigger to make my initial investments and how much can I feasibly control when it comes time to balance our or reinvest (either manually or via auto).
thanks.