target2019
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
FIREHAPPY,Two years down the road from my original post!
I received another call today from my brokerage firm suggesting I move out of Contrafund to a more tax efficient SMA. I realize Contrafund has a high management fee compared to other low cost funds, but I've held it for 25+ years and gains are well over 100%. They never mention any of my other funds such as Total Market Index.
(I take all Contrafund capital gain and dividend distributions each year as cash to help fund a portion of my retirement)
Is it really worthwhile to trade the fund and pay the big capital gains hit just to get to a more tax efficient SMA? (they are suggesting SMAs now, not ETFs.
It's confusing to me that I calls each year to move out of Contra.
Would appreciate your thoughts & comments.
I think you're getting pushed in a direction that needs a lot more evaluation than the adviser is performing. There is an investing principle component, and the adviser is presenting his narrow view to you. Elements of truth are that Contrafund has a higher expense ratio, and is tax-inefficent to some degree. No one commenting here knows your taxes (or your investment list), so everything is a "maybe" comment.
Until you have a tax analysis of what has occured, and what the future may present. Until someone can quantify and explain to you what the data actually is, I recommend you do nothing. In fact, you may gain the most by transferring out of this adviser agreement. Of course that could be a long affair, and might upset you.