I'm looking to potentially reallocate a family trust with highly appreciated securities but am struggling to figure out if it makes sense and the best way to do it. It's not super over-weight in any individual stocks (2 at 12%, the rest are under 10% of the portfolio), but I don't want to have to pay attention to the individual securities and worry about the increased risk. The account's value is mid 7 figures and 85% of it is gains, we also live in NYC so add 10+% tax to the capital gains tax rate.
Taking the huge tax hit to sell and reinvest looks like it will take years/decades to make up the returns on the amount paid in taxes. Is there a calculator or excel sheet that I can use to analyze different scenarios? And how do you calculate/estimate the cost of the concentration risk?
Is it better to just leave it as is and invest the dividends in a 3 fund portfolio? Reduce the most overweight positions and leave the rest? I've looked at exchange funds, but that doesn't seem to solve the problem since we just get back a basket of different securities that we have to manage and pay a fee for the 7 year lock-up.
At this account value, I know I should speak with a fee-only advisor but wanted to see if I'm missing something first and go in as prepared as possible.
Taking the huge tax hit to sell and reinvest looks like it will take years/decades to make up the returns on the amount paid in taxes. Is there a calculator or excel sheet that I can use to analyze different scenarios? And how do you calculate/estimate the cost of the concentration risk?
Is it better to just leave it as is and invest the dividends in a 3 fund portfolio? Reduce the most overweight positions and leave the rest? I've looked at exchange funds, but that doesn't seem to solve the problem since we just get back a basket of different securities that we have to manage and pay a fee for the 7 year lock-up.
At this account value, I know I should speak with a fee-only advisor but wanted to see if I'm missing something first and go in as prepared as possible.
Statistics: Posted by Brooklyn145 — Tue Oct 01, 2024 6:08 pm — Replies 3 — Views 187