Taking profits

Not trimming MSFT, since my shares were purchased in the 90s so I can deal with any pullback . I did trim about 10% of the shares back in 2019 as a retirement BTD gift to myself, at $138/share. I sacrificed future growth for then current greed 😂.

ORCL is another holding from the 90s that has had a nice run, not trimming that one. My individual stock holdings are not a large part of my portfolio and likely will be passed along to our heirs.
 
I don't have new money to invest but I am investing for my son. He is super conservative and I am nervous about losing his money, even in the short term. His instructions to me is to be conservative. Hence the conundrum.
How is he about learning financial and economic concepts? Right now, inflation has been high. Not undertaking enough risk can be just as bad as being too risky. Over time inflation can eat away at our savings. I can't think of a book that would serve as well a lesson than that of the current economy.
 
How is he about learning financial and economic concepts? Right now, inflation has been high. Not undertaking enough risk can be just as bad as being too risky. Over time inflation can eat away at our savings. I can't think of a book that would serve as well a lesson than that of the current economy.

He on the "spectrum" of autism and high functioning. He has 2 Bachelor degrees including one in Accounting. Some of the characteristics are resistance to changes and not taking risks. Hence I gift him money each year into his brokerage account and manage the investments for him. I intend to buy a couple of deferred fixed income annuities for him in 10 to 15 years' time, so that he will have income for life, besides low 7-digit investments and inheritance.
 
He on the "spectrum" of autism and high functioning. He has 2 Bachelor degrees including one in Accounting. Some of the characteristics are resistance to changes and not taking risks. Hence I gift him money each year into his brokerage account and manage the investments for him. I intend to buy a couple of deferred fixed income annuities for him in 10 to 15 years' time, so that he will have income for life, besides low 7-digit investments and inheritance.
He'll be just fine by the sound of it.
 
+1

AAPL is my only individual stock holding, and has swelled to a substantial portion of our NW. Still bullish on the company, but was happy to cash out those shares near the recent peak (sell price was $219.91).
AAPL is my largest (by far) individual stock holding. I just recently closed on a new (to me) home (2nd, but eventually primary). To purchase it I had to use all of my non-tax-deferred cash plus some $ from my Roth (which I intend to 60-day) plus margin.

I would have sold some Apple (especially with the run to 230+) but didn't want the large-ish capital gain which would put me up a couple additional IRMAA brackets. Instead, if I could defer the gain until next year the impacct would be lessened (as I am no longer working).

So when the stock was $232 I wrote some Jan 25 240 calls and used most of that money to buy Jan 25 220 puts. The calls brought in $13.75/share, the puts cost $8.43/share. Net to me $5.32/share. If the stock runs above 240, my net (after options) sale price is 240 + 5.32 = 245.32. If the stock falls below 220, my net sales price will be (aproximately) 220 + 5.32 = $225.32. If in Jan 25, the price is between 220 and 240, my net sales price will be x (the price at that time) + $5.32.

All in all, this lets me push out the realization until next year (minus the carry cost of margin) to when I should be in a lower tax bracket (or at least not blowing into a higher one). I would rather have the stock higher than lower because I have considerably more than what I wrote the collar (options pair) on.
 
Over the last few weeks I’ve dialed back my asset allocation to about 70% stocks. The market has been hot and I’ve crept above 90% stocks. I also sold all my NVDIA stock a few weeks ago.

I think we’re heading into a recession, but am too young to take “everything off the table”… so I’ve rationalized 70% as being reasonable.. but if the market goes higher before the election I may take another 10% or so out,
 
I own no individual stocks, but to reduce risk trimmed my AA by 5% in July due to hitting a record value of the portfolio, exceeding our needs.
 
My concern about "trimming" gains is that they are all taxable. So there's potential bracket creep as well as IRMAA issues and maybe even excess income tax (forget the name of that one.)

Yeah, I know. First world problems! (Or, old "rich" guy problems.) :cool:
Exact same situation. I don't need more income! Just checked and in my taxable account 24% of the value is unrealized gains. Prevents me from trying to time the market anyway.
 
Exact same situation. I don't need more income! Just checked and in my taxable account 24% of the value is unrealized gains. Prevents me from trying to time the market anyway.
Exactly, I no longer have tax-deferred money as I used the IRA money to buy deferred fixed income annuities 8 years ago when I retired. I have been looking at trimming my taxable account equity positions to move them to MYGA and everything would incur capital gains tax if I were to sell. So I have to just stay put.
 
Over the last few weeks I’ve dialed back my asset allocation to about 70% stocks. The market has been hot and I’ve crept above 90% stocks. I also sold all my NVDIA stock a few weeks ago.

I think we’re heading into a recession, but am too young to take “everything off the table”… so I’ve rationalized 70% as being reasonable.. but if the market goes higher before the election I may take another 10% or so out,
Respectfuly, I do not think thats what you want to do. Sounds like you are taking a trading approach. Stay Fully Invested.

You will leave more on the table in the runup to whatever is next than you will save by avoiding whatever it is.

A nickel's worth of free advice :)
 
I trimmed a bit of GOOG. I added to NVDA , META and AVGO recently. Though they have moved a lot, I consider all 3 to be good values here. Considering adding to AMZN also.

AAPL has been a "hold" for me for quite a while. It is a middling position at this point buy I entered at $5 so not looking to sell. Also middling position in MSFT which I have not touched.

Have never owned TSLA and no plan to add.

I generally manage indididual stocks to 5% of everall equity portfolio but a couple of these are a bit north of there.

As we head into a rate cutting cycle I expect stocks to continue to rally, at least for now.
 
It’s OK to take profits. 30 years ago you may have held Enron, GE, Sears and Kmart. Most of these market leaders were wiped out.
 
I started taking my dividends in cash a few years ago so as to gently reduce my equity perecentage. So far that has cost me a small bundle, but it's worth it to be able to sleep at night. That money is there in the event the Bear returns to savage stock investors. Having lived through two -40% Bear markets, I tend to be careful.
 
I've thought the same thing. So should I sell KO or PEP? :)
The question in my head is what will you buy with the proceeds?

I would keep PEP and sell KO if I were selling.

And If I did that right now I might buy a financial or energy.

Or maybe a P&G or pharma.
 
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The answer should probably be driven primarily by your rebalancing guidelines. Admittedly, I sold about 1/3 of NovoNordisk last year when it shot up, but my direct stock portfolio is only 10% of our portfolio, so in the large view, it didn't matter.
 
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