Chuckanut
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
I have a bit of a dilemma. Thanks to the stock market gains over the past few years, my AA is out of wack by over 5%. I want 60/40 and it is now 65/35. In the past I have re balanced using tax sheltered money, but for 2020, my IRA accounts are mostly bonds and cash equivalents. So I now have to sell stocks in my taxable accounts to re-balance. The sales would be limited to shares with LT capital gains. My estimate is that the sales will trigger about 75K in LT gains. Yes, I realize that all things considered this a good problem to have.
My belief is to stick to my AA, re-balance, pay the taxes and don't risk losing the big gains of 2020. Don't let the tax tail wag the dog. Consider the taxes paid as insurance to help preserve the gains. etc. etc. etc.
Thoughts. Surely I am not the only person to face this 'good to have' problem.
My belief is to stick to my AA, re-balance, pay the taxes and don't risk losing the big gains of 2020. Don't let the tax tail wag the dog. Consider the taxes paid as insurance to help preserve the gains. etc. etc. etc.
Thoughts. Surely I am not the only person to face this 'good to have' problem.