Personal Investments • Target Date Index Funds in Taxable Accounts.... HELP

Hi all,

I have a main question for this group on general advice of what to do currently. For starters, I'm a 31-year-old living in NYC and working in tech.

I did not know what I was doing investment-wise for many years, and I put a lot of money in a Vanguard Target Date Index Fund (VTTVX) in a TAXABLE brokerage account. I have since learned that this is very bad, and one of the worst things I could have done from a tax & capital gains standpoint.

Currently, this sits as follows:

The amount I've deposited overtime in VTTVX: $565,000
The Current value of my stocks in VTTVX: $697,000

My goal is to get these into a more tax-advantaged ETF (VTI) ASAP, but I know the capital gains tax will be high.

I had an accountant advise me to either:

1) Wait until the market crashes/goes down a lot to sell most of it, and immediately buy VTI

OR

2) Wait for a year when I make less money than I do now (I'm thinking about taking time off work) so that the capital gains taxes will be less because I will be in a lower tax bracket

Can anyone here confirm that this is the correct path/recommendation given my situation, or any other thoughts on the matter?

Statistics: Posted by MyInvestment123 — Tue Jan 07, 2025 1:18 pm — Replies 2 — Views 166

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