The target is based on a capital gains tax bill of $1500 that I can afford. After I retire in about 10-12 years, I will presumably be in a lower tax bracket and might be able to complete the process a lot sooner. That being said - I am not planning to get rid of all stock in favor of index funds. Some of my big winning stocks (AAPL, MSFT, META, GOOG) are already a big part of most index funds - so I am planning to hold on to them for longer.I'm wondering how you chose that target?My target would be to keep my net capitals gain around $10k or less in a given tax year. (I am in the 15% tax bracket for capital gains, like most other people)
At that goal, and $380K in unrealized gains, it sounds like it would take you 38 years to sell your stock? Or the value would go down drastically, and you could sell it faster, but that wouldn't really be a happy ending.
I would sell much, much faster, now, while its value is high.
Also, if the market goes down again (it is not really a question of if, but when) - I will be able to convert fat a faster rate.
Statistics: Posted by friluftsliv-roy — Tue Sep 10, 2024 10:53 pm — Replies 10 — Views 339