You might be low on the numbers of shares that have negative gains, but how much do you have that have only a little bit of gains percentage-wise? We cannot avoid all taxes here, but I imagine there are some recent shares or 2021 lots that are not a major gain.I’m about 8 years from retirement and have never rebalanced my portfolio and at 85% stocks 12 Bond Funds and the some cash. To rebalance, selling will really hurt since I have little negative gains to realize. I don’t have enough cash or future cash to fix it in the short term. Maybe even long term.
Is it worth the tax hit to fix this now or just start and make sure I start moving dividends to my Bonds when they are up or pay? That seems really slow and not like to ever get there.
One idea, but I fear that if I toss this into robo it will just do it all at one time. Plus they aren’t free and then I’ll get a massive tax bill.
I also need to change my holdings too and I’m confused how to do that safely such as get into more of another type of Bond Fund.
I’m really on the fence to use a FA since I have about $5M saved not counting 401k. My thought is an FA would make this shift for me properly and if I do this with my “know just enough to be dangerous”skill level that could hurt me long term.
At this rate AUM would cost me between .05-.75%.
For example, if there are lots with a 25% gain, then selling $10000 worth is a $2000 gain, resulting in a ballpark LTCG tax of $500. Scale that 100x, and you would free $1 million dollars with a tax bill of $50k. That would be 20% of the $5 million. An advisor at 0.5% would charge $25k and you still carry all the tax liability.
Maybe it is not that rosy, but it is worth seeing what can be done reasonably.
Statistics: Posted by secondopinion — Wed Feb 26, 2025 12:59 am — Replies 9 — Views 539