Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Redeeming funds before December distributions
Old 11-24-2020, 12:45 PM   #1
Thinks s/he gets paid by the post
 
Join Date: May 2008
Posts: 4,924
Redeeming funds before December distributions

So it should all even out, you sell before the distributions, the NAV should be higher but if you wait until after you collect the distributions, the NAV would be lower, assuming the market is mostly steady?

December has the biggest distributions so maybe you miss out by selling early but OTOH, people do things like tax loss harvesting or trimming so it must be a common occurrence, to sell funds late in the year?
explanade is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 11-24-2020, 02:50 PM   #2
Thinks s/he gets paid by the post
 
Join Date: Jan 2008
Posts: 1,126
A lot of people time their RMDs at the end of the year which also probably triggers sales. No RMDs this year, however.
jebmke is offline   Reply With Quote
Old 11-24-2020, 03:40 PM   #3
Thinks s/he gets paid by the post
 
Join Date: Mar 2009
Posts: 2,419
Based on today's close the opportunities for TLH are evaporating quickly. I've suddenly gone from potential loss to gain in a short period of time.
__________________
Took SS at 62 and hope I live long enough to regret the decision.
foxfirev5 is offline   Reply With Quote
Old 11-24-2020, 03:43 PM   #4
Thinks s/he gets paid by the post
 
Join Date: May 2008
Posts: 4,924
Quote:
Originally Posted by foxfirev5 View Post
Based on today's close the opportunities for TLH are evaporating quickly. I've suddenly gone from potential loss to gain in a short period of time.
There are worse problems than not being able to TLH in a given year.




So has anyone sold funds in taxable accounts in late November, early December?
explanade is offline   Reply With Quote
Old 11-24-2020, 04:11 PM   #5
Thinks s/he gets paid by the post
 
Join Date: Mar 2009
Posts: 2,419
Quote:
Originally Posted by explanade View Post
There are worse problems than not being able to TLH in a given year.
Absolutely. I was merely responding to the OP's question. I'm a big boy and will accept whatever the market gives me.
__________________
Took SS at 62 and hope I live long enough to regret the decision.
foxfirev5 is offline   Reply With Quote
Old 11-24-2020, 05:06 PM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 28,103
Quote:
Originally Posted by explanade View Post
So it should all even out, you sell before the distributions, the NAV should be higher but if you wait until after you collect the distributions, the NAV would be lower, assuming the market is mostly steady?

December has the biggest distributions so maybe you miss out by selling early but OTOH, people do things like tax loss harvesting or trimming so it must be a common occurrence, to sell funds late in the year?
If you sell the funds entirely, yes, it’s mostly a wash. But there are a few minor quibbles. Assuming you’ve held the fund for a long time, you can avoid any short term cap gains distributions and non-qualified dividend distributions by selling ahead which hopefully makes it 100% long-term cap gains which gets better tax treatment.

People only do tax loss harvesting if they have losses to realize. Not likely when a fund is near highs. Tax loss harvesting is usually done during a big sell off like we had in March/April.

If I trim a fund I usually wait to trim early the next year, unless the realized gain in the fund is less than the estimated distribution in which case I sell the entire fund ahead assuming it’s not one I plan to keep long term.
__________________
Retired since summer 1999.
audreyh1 is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
[For my fiction book] Redeeming Stock Certificates TromboneAl FIRE and Money 10 10-06-2015 05:12 PM
Redeeming Paper Stocks imoldernu FIRE and Money 4 12-16-2013 11:51 PM
Redeeming This Coin TromboneAl FIRE and Money 6 01-15-2009 02:43 AM
Redeeming CDs Mysto FIRE and Money 12 01-08-2008 03:32 AM

» Quick Links

 
All times are GMT -6. The time now is 06:00 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2021, vBulletin Solutions, Inc.