Over the last couple of years I have been adding to a Vanguard Wellesley taxable position for a total sum of 290k invested. As of today, my cost basis 314k and account value 280k. I just saw that the year end estimated distribution will be approx $2.65/share on 4513 shares or approx 12k.
Our 2022 income will be in the 220-230k range w/o this gain. My goal is the leave w*rk 1st quarter 2023 resulting in substantially lower taxable annual income from there on out, or at least until RMDs start.
I am considering selling the entire account but don't know if I should do it before the capital gain distribution or after. I will probably try to replicate the allocation using a stock etf and cds/bonds. This money is part of my taxable dollars that will allow for income flexibility to qualify for lower ACA costs. At 56yo now, the dollars needed for 23, 24, 25, 26 are in treasuries. The Wellesley dollars were tasked to supplement pretax account withdrawals from age 60ish to 65yo.
I really do not want to pay additional taxes on an account this is already underwater. Taking the capital loss to offset gains seems like a good idea. What say you?
**A bonus of selling will be that I can move the dollars into Fidelity to further simplify my accounts.
Our 2022 income will be in the 220-230k range w/o this gain. My goal is the leave w*rk 1st quarter 2023 resulting in substantially lower taxable annual income from there on out, or at least until RMDs start.
I am considering selling the entire account but don't know if I should do it before the capital gain distribution or after. I will probably try to replicate the allocation using a stock etf and cds/bonds. This money is part of my taxable dollars that will allow for income flexibility to qualify for lower ACA costs. At 56yo now, the dollars needed for 23, 24, 25, 26 are in treasuries. The Wellesley dollars were tasked to supplement pretax account withdrawals from age 60ish to 65yo.
I really do not want to pay additional taxes on an account this is already underwater. Taking the capital loss to offset gains seems like a good idea. What say you?
**A bonus of selling will be that I can move the dollars into Fidelity to further simplify my accounts.