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Investing - Theory, News & General • 10% cash position excessive?

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I agree with diversifying but gains are so large it would be a big tax bill. Only QQQM position is in an IRA and honestly I just leave it there set to DRIP and I never touch it.

One option is to simply taking the tax hit (LTCG) with the growth ETF and open a large muni bond position.
You could try to do it more tax efficiently. Rebalance tax-advantaged funds (or just pre-tax funds) to underweighted assets. Stop reinvesting taxable dividends, and use those and new contributions to get closer to your desired allocation.

It won't change your allocations as quickly, but you may be able to shift 2% to 3% a year without new contributions.

Figuring out your desired asset allocation may be harder. It probably depends on how much your anticipated future income and expenses are compared with your portfolio size.

Statistics: Posted by Lyrrad — Sun Mar 24, 2024 9:36 pm — Replies 20 — Views 1237



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