harley
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Like Unclemick, I have an account that I use for speculation, completely separate from my "real" investments. I've been gambling with individual stocks in it since the early 90s, starting with a $5K stake. I've had my ups and downs, my multi-baggers and my bankruptcies. Overall, I've been tremendously successful, mostly through a single investment. And therein lies my dilemma.
While my gambling account is still an acceptable percentage of my net worth, the dollar amount has gone over $100K. I've been thinking that maybe I should liquidate it down to a less high-roller amount, and move the rest into my "real" portfolio, split amongst my normal AA. Or I could sell a bunch of the stocks and diversify in the hormone account, hoping to hit another jackpot. Or, I could just leave well enough alone, and hope I don't ride the big winner back down (been there, done that).
I have been gifting ~$5K worth of stock to DD for the past few years. She's been in the 10% bracket, so she's been able to sell it with no cap gains, then use it to fund her Roth. I'll probably keep doing that, even though she's moved into the 15% bracket and they'll probably do away with the no cap gains thing soon anyway. I personally have been in the 10-15% bracket the past few years, but I've been using my bracket space for Roth conversions. So selling would result in a tax hit, and I'd have to skip the next few conversions. But I'd be selling with the cap gains at 15%, which may not last long.
So, what would y'all do?
While my gambling account is still an acceptable percentage of my net worth, the dollar amount has gone over $100K. I've been thinking that maybe I should liquidate it down to a less high-roller amount, and move the rest into my "real" portfolio, split amongst my normal AA. Or I could sell a bunch of the stocks and diversify in the hormone account, hoping to hit another jackpot. Or, I could just leave well enough alone, and hope I don't ride the big winner back down (been there, done that).
I have been gifting ~$5K worth of stock to DD for the past few years. She's been in the 10% bracket, so she's been able to sell it with no cap gains, then use it to fund her Roth. I'll probably keep doing that, even though she's moved into the 15% bracket and they'll probably do away with the no cap gains thing soon anyway. I personally have been in the 10-15% bracket the past few years, but I've been using my bracket space for Roth conversions. So selling would result in a tax hit, and I'd have to skip the next few conversions. But I'd be selling with the cap gains at 15%, which may not last long.
So, what would y'all do?