By Dr. Jim Dahle, WCI Founder

I’ve been getting emails from WCIers (and my own daughter) that Vanguard is sending them emails with this message. The email starts with the title: “Action needed: Choose an automated cost basis method.”

And from there, Vanguard describes its recent decision to stop using the SpecID option as an automated cost basis method in your taxable account. Instead, beginning in August 2025, it says the only automated methods will include: FIFO, MinTax, and HIFO.

Here’s the entire email.

The emailers ask, “Which one should I pick?”

So far, I’ve just been reassuring them that it doesn’t matter. As Vanguard says, “You’ll still be able to use SpecID for individual transactions.” I intend to take Vanguard up on that offer, as I always have when selling shares to tax-loss harvest or donating shares to our Donor Advised Fund (DAF). But since you have