cash account for inheritance purpose

[Ready-4-ER-at-14]

Pretty much have converted reg ira to roth.

Now need to decide what to do with cash accounts.

I remember Berkshire Hathaway tried to minimized dividends or capital gains so you basically had appreciation that could reset cost basis for person who might inherit it.

I was looking at expensive whole life insurance as a possible way to do inheritance to heirs but gut said no there must be a better way. Tax exempt could work i suppose but feel ho hum about that.

Has anyone bought growth stock just for capital appreciation that they either didn't use of donated to a charity for tax minimalization?

I was thinking how to screen for a stock that would work and had some ideas.
low or no dividend say <1% ,
increasing retained value
increasing funds from operation
low pe
> 50k stock exchanged daily (liquid)
plus if optionable

Am open to ways to think on this or even some holdings you think could be candidates. This would be a long term holding.

In past I had focused on acquiring dividends in defered holdings so a differt set to my sails.

Ty for any ideas or comments.

 

[DrRoy]

I would not pick any single stock. A black swan event could doom any company. Pick a low dividend, high growth sector fund or ETF like technology.

 

[Sunset]

I like having BRK as a non-taxable way to grow money, until it's sold. Of course if it's inherited then it gets stepped up !

Since it's comprised of many businesses, I don't feel it's as risky as a single company.

However, an ETF like VTI would achieve a similar goal with a small taxable event each year as it throws off 1.37% dividends. Same with SPY at a 1.29% dividend

What I like about the stock holding choice vs other choices like insurance, is that the future is hard to forecast and should you need the money, it's there to use.

 

[Ready-4-ER-at-14]

Thanks these responses were the sort of things i was hoping to see.

Spy and some of the other indexes i already have so maybe I just shift more of that to the taxable accounts if the historic taxable payouts have been small.

 

[catii]

Yup, BRK is a good choice.

 

[Ready-4-ER-at-14]

Thanks to you for your response as well.

 

[MarieIG]

I have also being trying to shift a portion of my taxable portfolio into ETFs with more of a growth factor and less dividend focused.

I am rather late to the party in this regard, but am looking at SCHG, but would probably dollar cost average in as it has had recent run-ups. (I am not saying that is the best strategy, as of course I could miss more gains, but it goes with my temperament.)

 

[nwsteve]

Look at SPHQ etf--does slightly better than the SP500, low dividend payout with 100 highest quality stocks in S&P500. Gets reset I think twice a year

 

[Texas Proud]

Look at SPHQ etf--does slightly better than the SP500, low dividend payout with 100 highest quality stocks in S&P500. Gets reset I think twice a year

Never have seen this before... thanks... I think I will buy some...

It was interesting back when I was in college... I took a portfolio class and one time I was telling the prof how to beat the DOW... rank all 30 of the stocks and choose the worst 1 to 5 of them and buy the rest... the likelyhood of them being at the top would be low so you would beat the DOW by whatever drag that stock would have on the index.... this is similar thinking...

Now, will they actually pick the top 100? Probably not... but that 100 should be better than any other 100 that was picked... in theory that is... wonder if someone has tested it out??