Sojourner
Thinks s/he gets paid by the post
- Joined
- Jan 8, 2012
- Messages
- 2,610
Let's say you hold a particular asset, such as an individual stock, that comprises about 15% of your total net worth. Let's say that stock is at a 15 year high right now, up more than 800% from its low during that period, and you wanted to begin disposing of it as quickly as possible but in a tax-efficient manner. Let's say you will owe substantial cap gains due to its massive run up in value.
Would you seek to sell it all at once in order to use the cash proceeds to diversify as quickly as reasonably possible into your chosen AA, or would you sell it off more slowly, seeking to spread out your CG tax burden over a number of years and selling more in years when the stock is up and less when it's down? Are there other strategies that might make sense besides these?
Would you seek to sell it all at once in order to use the cash proceeds to diversify as quickly as reasonably possible into your chosen AA, or would you sell it off more slowly, seeking to spread out your CG tax burden over a number of years and selling more in years when the stock is up and less when it's down? Are there other strategies that might make sense besides these?