I'm looking for advice on simplifying my investment portfolio while minimizing tax implications. Over the years, I've accumulated various funds, but I've since shifted my strategy to focus primarily on VOO and some VXUS. My current portfolio includes VTSAX (54.64%), VOO (15.85%), VTIAX (11.37%), VTMFX (8.80%), VTWAX (3.13%), and several smaller positions (PPTY, VTHRX, VSMGX, QQQ, VTTX, VDC, VXUS) each under 2%.
I'd like to consolidate these holdings, particularly the smaller positions, without incurring significant taxes. I'm considering a strategy of waiting for market downturns when these smaller funds might be in the red, then selling them to avoid tax liability. Additionally, I need to sell some funds to finance a car purchase without touching my emergency fund. Given these goals, what would be the most tax-efficient approach to simplify my portfolio and transition toward my preferred VOO and VXUS focus? Are there other strategies I should consider to minimize tax impact while consolidating?
| Symbol | Average Cost Basis | Last Price | % of Account |
|--------|-------------------:|-----------:|-------------:|
| VTSAX | $100.93 | $131.22 | 54.64%
| VOO | $313.18 | $506.81 | 15.85%
| VTIAX | $32.41 | $32.54 | 11.37%
| VTMFX | $32.72 | $43.72 | 8.80%
| VTWAX | $32.14 | $40.12 | 3.13%
| PPTY | $27.31 | $30.2965 | 1.80%
| VTHRX | $32.05 | $37.73 | 1.14%
| VSMGX | $27.94 | $31.94 | 0.94%
| QQQ | $301.51 | $491.04 | 0.77%
| VTTX | $17.80 | $19.37 | 0.65%
| VDC | $163.07 | $202.50 | 0.27%
| VXUS | $60.44 | $61.32 | 0.04%
I don't want to get rid of VXUS as I want to keep adding to it and can't buy the index version of it as I just moved my funds from Vanguard to Fidelity.
Any insights on effectively simplifying while managing tax implications would be greatly appreciated. Thank you!
I'd like to consolidate these holdings, particularly the smaller positions, without incurring significant taxes. I'm considering a strategy of waiting for market downturns when these smaller funds might be in the red, then selling them to avoid tax liability. Additionally, I need to sell some funds to finance a car purchase without touching my emergency fund. Given these goals, what would be the most tax-efficient approach to simplify my portfolio and transition toward my preferred VOO and VXUS focus? Are there other strategies I should consider to minimize tax impact while consolidating?
| Symbol | Average Cost Basis | Last Price | % of Account |
|--------|-------------------:|-----------:|-------------:|
| VTSAX | $100.93 | $131.22 | 54.64%
| VOO | $313.18 | $506.81 | 15.85%
| VTIAX | $32.41 | $32.54 | 11.37%
| VTMFX | $32.72 | $43.72 | 8.80%
| VTWAX | $32.14 | $40.12 | 3.13%
| PPTY | $27.31 | $30.2965 | 1.80%
| VTHRX | $32.05 | $37.73 | 1.14%
| VSMGX | $27.94 | $31.94 | 0.94%
| QQQ | $301.51 | $491.04 | 0.77%
| VTTX | $17.80 | $19.37 | 0.65%
| VDC | $163.07 | $202.50 | 0.27%
| VXUS | $60.44 | $61.32 | 0.04%
I don't want to get rid of VXUS as I want to keep adding to it and can't buy the index version of it as I just moved my funds from Vanguard to Fidelity.
Any insights on effectively simplifying while managing tax implications would be greatly appreciated. Thank you!
Statistics: Posted by anuaps — Fri Jul 12, 2024 9:28 pm — Replies 0 — Views 104