You might want to revisit your tax math. At the 15% LTCG tax rate you'd have to realize $266,666 in gains to owe $40K in taxes. You only have $250K of individual stocks in your taxable account total, including the original purchase basis before accruing any subsequent gains.Wouldn't selling the individual stocks create an unnecessary tax liability for me today? I get the process of selling them and then moving into a Total Stock Mkt Fund, but I think I might own $40K or so on the capital gains./???
Regarding creating "unnecessary tax liability for me today", only you can choose whether to continue holding $250K in more volatile individual stocks(compared to a total market index fund or bonds etc.) in order to avoid paying taxes on any gains you've enjoyed, or opt to sell them and pay the taxes in order to reinvest in more diversified and/or less risky positions to better position yourself to meet your retirement goals.
But your original post clearly acknowledged that "I know that this is a risky portfolio, being all in equities" and that you wanted to grow your portfolio going forward "with some level of ballast or safety in my distribution of assets." Continuing to hold those individual stocks just to avoid paying taxes on the gains doesn't seem to be the logical way to do that.
Just curious, what was your exit strategy and anticipated timing for selling those individual stocks back when you bought them in the first place? Were you just planning to hold them indefinitely regardless of their performance? Would you buy them again tomorrow if you had the cash available to invest, or would you buy something else instead?
I can understand holding on to them, in appropriate proportions and asset locations, if that's part your carefully thought out and documented long-term investment strategy. But that doesn't seem to be the case here.
Statistics: Posted by Squirrel208 — Sun Jul 28, 2024 3:36 pm — Replies 18 — Views 1862