Originally Posted by pb4uski
Since this is a taxable portfolio, will you be taking a big tax hit to do this repositioning?
That's what I'm trying to determine. If I do a large portion of it at the beginning of the year before dividends and CG distributions start occurring for the new year the hit might not be so bad.
So far the dividends and CG distributions have been enough to cover all of my expenses each year without having to sell any shares. And I won't have to pay any tax on them this year but it leaves no headroom for ROTH conversions.
If I convert to index funds, the taxable events will be lower or non-existent but then I'll have to sell shares to cover living expenses. I'm trying to determine the impact of that - for instance, if shares don't appreciate.