Hi,
Not long ago, I took over my investments from my FA. They were mostly invested in stock. I have began the transition to an ETF portfolio for my equities but want to get some feedback on a step that faces me now.
During my transition, I accumulated a decent size short term loss. My portfolio now is all positive in gains. The market has changed enough that I am losing confidence in some of the stocks and I am ready to sell. But, most have substantial gains. On a total basis my gains dwarf my loses.
I understand, not selling a stock that is losing value to avoid a capital gains tax hit is a bad idea. But is their a reason to maintain a 'bank' of realized losses or is the best thing to do is use them ASAP?
Thanks
Not long ago, I took over my investments from my FA. They were mostly invested in stock. I have began the transition to an ETF portfolio for my equities but want to get some feedback on a step that faces me now.
During my transition, I accumulated a decent size short term loss. My portfolio now is all positive in gains. The market has changed enough that I am losing confidence in some of the stocks and I am ready to sell. But, most have substantial gains. On a total basis my gains dwarf my loses.
I understand, not selling a stock that is losing value to avoid a capital gains tax hit is a bad idea. But is their a reason to maintain a 'bank' of realized losses or is the best thing to do is use them ASAP?
Thanks