I'm hoping the wisdom of the board can help me with a few decisions I need to make as 2024 draws to a close.
1) I'm looking to Tax Gain Harvest in my kid's UGMA account. I'll have close to $1800 of TGH this year.
The portfolio breakdowns are roughly:
VTI - 41%
VOO - 54%
SCHA - 5%
-- The main investment is VTI.
-- The VOO investment comes from previous TLH/TGH opportunities.
-- The SCHA investment is because my monthly contributions to the account can't buy a full share of VTI or VOO so I buy a few shares of SCHA.
-- The SCHA position has an average gain of 13% (individual lots from 7% to 19%) and its total gain would not consume the entire $1800 TGH. These are all short term gains.
-- The VOO position has a single lot with a gain of 27%. Its gain could cover the $1800 TGH. This is a short term gain.
-- The VTI position has an average gain of 42% (individual lots from 13% to 52%). Its gain could cover the $1800 TGH. It has both short term gains (about 20% of the TGH amount) and long term gains.
1a) As a general rule, should I target holdings with the highest gains or should I target holdings to simplify the portfolio?
1b) I can TGH my VTI and buy VTI immediately if I want the highest gains. This will leave the portfolio with the same holdings.
1c) I can TGH SCHA and VOO and buy VTI. This would remove SCHA and shift more of my account to VTI but I'd still have a pretty sizable VOO holding. It's likely I will continue to buy SCHA monthly (so the portfolio will quickly revert back to 3 holdings).
2) In my portfolio, I'm trying to figure out the best place to put my international holdings (taxable, tax-deferred, tax-free).
I was "convinced" that I should have them in my taxable accounts to get the foreign tax credit so that's where they've been.
I became less "convinced" when I both started to understand the tax treatment on qualified vs non-qualified dividends AND reading that foreign ETF dividends are much less "qualified" than their US counterparts.
-- Grok says that VTI has about ~5-7% non-qualified dividends while VXUS has ~25%.
-- My marginal tax bracket is the highest (and will be for some time) bracket and I also pay NIIT. I believe this means that my qualified dividends are taxed at 23.8% and non-qualified dividends are taxed at 40.8%.
-- I have similar investments in both my taxable, tax-deferred, and tax-free accounts.
-- I can fit my entire desired international allocation in my taxable accounts.
-- I can fit my entire desired international allocation in my tax-deferred accounts.
-- I can fit about 50% of my desired international allocation in my tax-free accounts.
Thanks!
1) I'm looking to Tax Gain Harvest in my kid's UGMA account. I'll have close to $1800 of TGH this year.
The portfolio breakdowns are roughly:
VTI - 41%
VOO - 54%
SCHA - 5%
-- The main investment is VTI.
-- The VOO investment comes from previous TLH/TGH opportunities.
-- The SCHA investment is because my monthly contributions to the account can't buy a full share of VTI or VOO so I buy a few shares of SCHA.
-- The SCHA position has an average gain of 13% (individual lots from 7% to 19%) and its total gain would not consume the entire $1800 TGH. These are all short term gains.
-- The VOO position has a single lot with a gain of 27%. Its gain could cover the $1800 TGH. This is a short term gain.
-- The VTI position has an average gain of 42% (individual lots from 13% to 52%). Its gain could cover the $1800 TGH. It has both short term gains (about 20% of the TGH amount) and long term gains.
1a) As a general rule, should I target holdings with the highest gains or should I target holdings to simplify the portfolio?
1b) I can TGH my VTI and buy VTI immediately if I want the highest gains. This will leave the portfolio with the same holdings.
1c) I can TGH SCHA and VOO and buy VTI. This would remove SCHA and shift more of my account to VTI but I'd still have a pretty sizable VOO holding. It's likely I will continue to buy SCHA monthly (so the portfolio will quickly revert back to 3 holdings).
2) In my portfolio, I'm trying to figure out the best place to put my international holdings (taxable, tax-deferred, tax-free).
I was "convinced" that I should have them in my taxable accounts to get the foreign tax credit so that's where they've been.
I became less "convinced" when I both started to understand the tax treatment on qualified vs non-qualified dividends AND reading that foreign ETF dividends are much less "qualified" than their US counterparts.
-- Grok says that VTI has about ~5-7% non-qualified dividends while VXUS has ~25%.
-- My marginal tax bracket is the highest (and will be for some time) bracket and I also pay NIIT. I believe this means that my qualified dividends are taxed at 23.8% and non-qualified dividends are taxed at 40.8%.
-- I have similar investments in both my taxable, tax-deferred, and tax-free accounts.
-- I can fit my entire desired international allocation in my taxable accounts.
-- I can fit my entire desired international allocation in my tax-deferred accounts.
-- I can fit about 50% of my desired international allocation in my tax-free accounts.
Thanks!
Statistics: Posted by jaj2276 — Sun Dec 08, 2024 7:49 am — Replies 2 — Views 84