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Should I sell all these, pay capital gains taxes and then buy index funds
04-23-2014, 01:48 PM
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#1
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Thinks s/he gets paid by the post
Join Date: Jul 2013
Posts: 1,046
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Should I sell all these, pay capital gains taxes and then buy index funds
I have these few individual stocks in one of my brokerage accounts. I'm thinking of selling them all and moving the money into my Vanguard account that is almost all VTSAX and VIMAX.
A couple of these are long term, other's short term. However, the net gain is so little I'm thinking of just selling and moving them all in one shot. Does that sound reasonable?
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04-23-2014, 01:52 PM
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#2
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Moderator Emeritus
Join Date: May 2007
Posts: 12,890
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As long as you don't mind paying the taxes, sure, why not?
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04-23-2014, 02:11 PM
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#3
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Thinks s/he gets paid by the post
Join Date: Jun 2005
Posts: 2,610
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Or you could delay a bit to get everything into long term gain status, but the difference in taxes would probably be relatively small.
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04-23-2014, 02:33 PM
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#4
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Thinks s/he gets paid by the post
Join Date: Jul 2013
Posts: 1,046
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That was my initial thought too but with a net gain of about $1k with probably about $250 tax is it a big deal? then again will moving this money into vanguard isn't paramount either since I'm doing it mainly for simplification and to keep dividends in my taxable account to a min.
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04-23-2014, 03:19 PM
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#5
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Oct 2006
Posts: 7,733
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I'd wait until the end of July to get LTG also, although the amount of money is relatively small. Personally it feels like a sideways market to me, and all of the stocks except for Berkshire pay well above dividends.
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04-23-2014, 03:43 PM
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#6
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Moderator
Join Date: Jul 2010
Posts: 7,913
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The $ difference isn't enough to delay if it's what you want to do - with things like this, I have a tendency to lose momentum through over analysis and trying to optimize when in reality the magnitude of difference isn't worth the time I spend on it.
__________________
"One of the funny things about the stock market is that every time one person buys, another sells, and both think they are astute." William Feather
----------------------------------
ER'd Oct. 2010 at 53. Life is good.
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04-23-2014, 05:43 PM
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#7
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gone traveling
Join Date: Apr 2011
Posts: 3,375
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If the difference is a big enough deal to you such that you felt the need to post it here, imo you aren't close to ER.
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04-23-2014, 05:58 PM
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#8
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Thinks s/he gets paid by the post
Join Date: Jul 2013
Posts: 1,046
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I'll probably just go ahead and sell these off just to simplify the portfolio. I thought someone may have a better way of doing it (exchanging of funds) or advice for not doing anything at all since they are decent picks for dividends.
@gerntz, I'm not close to ER - about 10-12 years out.
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04-23-2014, 06:20 PM
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#9
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2005
Posts: 10,252
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Or don't pay any taxes: Give all shares with LT gains away to charity. Sell losers. Anything with short-term gains, use the losers to offset, then wait for rest go LT, then give away to charity.
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04-23-2014, 06:50 PM
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#10
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Thinks s/he gets paid by the post
Join Date: Apr 2006
Posts: 1,684
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Those stocks are not bad picks, but if $18K - 20K is what you are willing to commit to stocks, I'd say you should probably sell them and put the money in mutual funds. Just wait a few months until all the gains are long term.
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