Hi everyone,
I’m 32 years old, and I have taxable acct holding several ETFs (VTV, VEA, VO, VOE, IWN, IWO) that make up about 35% of my portfolio, with the remaining 65% invested in VTI/VOO or equivalents. The account was originally managed and has since changed to self-directed. I made mistakes and bought a lot of equivalent S&P500 funds, hence why you'll see IVV, SPY, VOO together.
For simplicity, I’m considering selling these ETFs and consolidating everything into VTI. My total MAGI is around $170,000, and I’m thinking of spreading the sales over this year and next to manage the tax impact. I estimate my tax liability would be roughly 15% for Federal and 6% for NJ state, totaling about 20% of the gains (~$5,000).
What do you think? Should I consolidate and take the tax hit now, or keep the current holdings, turn off dividend reinvestment, and continue contributing to VTI over time? My plan is to hold for the long term, regardless of the decision.
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Adding information for more personalized respones:
Emergency funds: $95K in HYSA and $5K in checking account. Hoping to use the HYSA for downpayment in the near future.
Debt: $0
Tax Filing Status: Single
Tax Rate: 24% Federal, 6.37% NJ State
State of Residence: NJ
Age: 32
Desired Asset allocation: 100% stocks / 0% bonds
Desired International allocation: 0% of stocks
Approximate size of total portfolio.: ~500K in 401K, Roth IRA, and brokerage accounts, ~100K in HYSA and checking
Current Portfolio:
Roth IRA:
- VTI (ER = 0.03%, 99% of portfolio): $83K
- SCHB (ER = 0.03%, 1% of portfolio): $60
401k:
- S&P 500 Index (ER = 0.01%, 100% of portfolio): $170K
Brokerage account (it's a mess)
- VOO - VANGUARD S&P 500 ETF (ER = 0.03%, 20% of portfolio): $52K, 13K gains
- ITOT - ISHARES TOTAL US STOCK MARKET ETF (ER = 0.03%, 16% of portfolio): $43K, 20K gains
- VUG - VANGUARD GROWTH ETF (ER = 0.04%, 16% of portfolio, not re-investing dividends): $43K, 17K gains
- VEA - VANGUARD FTSE DEVELOPED MARKETS ETF (ER = 0.05%, 13% of portfolio, not re-investing dividends)): $36K, $6.7K LTCG
- VTV - VANGUARD VALUE ETF (ER = 0.04%, 6% of portfolio, not re-investing dividends)): $17K, 7K LTCG
- SPY - SPDR S&P 500 ETF (ER = 0.09%, 6% of portfolio, not re-investing dividends)): $15K, 6K gains
- VO - VANGUARD MID CAP ETF (ER = 0.04%, 5.5% of portfolio, not re-investing dividends)): $15K, 4.6K LTCG
- IVV - ISHARES CORE S&P 500 ETF (ER = 0.03%, 5.5% of portfolio): $15K, 5.6K gains
- VTI - VANGUARD TOTAL STOCK MARKET ETF (ER = 0.03%, 5.5% of portfolio): $15K, 1.2K gains
- VOE - VANGUARD MID CAP VALUE ETF (ER = 0.07%, 2% of portfolio, not re-investing dividends)): $6K, 1.9K LTCG
- IWN - ISHARES RUSSELL 2000 VALUE ETF (ER = 0.24%, 2% of portfolio, not re-investing dividends)): $4K, 1K LTCG
- IWO - ISHARES RUSSELL 2000 GROWTH ETF (ER = 0.24%, 1% of portfolio, not re-investing dividends)): $3K, 1K LTCG
- SCHB - SCHWAB US BROAD MARKET ETF (ER = 0.03%, 1% of portfolio): $325, $20 gains
Idea was to keep all S&P500, total stock market, and VUG funds and consolidate remainder to total stock market.
Keeping VUG because the capital gains are too much to realize for me right now.
I’m 32 years old, and I have taxable acct holding several ETFs (VTV, VEA, VO, VOE, IWN, IWO) that make up about 35% of my portfolio, with the remaining 65% invested in VTI/VOO or equivalents. The account was originally managed and has since changed to self-directed. I made mistakes and bought a lot of equivalent S&P500 funds, hence why you'll see IVV, SPY, VOO together.
For simplicity, I’m considering selling these ETFs and consolidating everything into VTI. My total MAGI is around $170,000, and I’m thinking of spreading the sales over this year and next to manage the tax impact. I estimate my tax liability would be roughly 15% for Federal and 6% for NJ state, totaling about 20% of the gains (~$5,000).
What do you think? Should I consolidate and take the tax hit now, or keep the current holdings, turn off dividend reinvestment, and continue contributing to VTI over time? My plan is to hold for the long term, regardless of the decision.
------------------------
Adding information for more personalized respones:
Emergency funds: $95K in HYSA and $5K in checking account. Hoping to use the HYSA for downpayment in the near future.
Debt: $0
Tax Filing Status: Single
Tax Rate: 24% Federal, 6.37% NJ State
State of Residence: NJ
Age: 32
Desired Asset allocation: 100% stocks / 0% bonds
Desired International allocation: 0% of stocks
Approximate size of total portfolio.: ~500K in 401K, Roth IRA, and brokerage accounts, ~100K in HYSA and checking
Current Portfolio:
Roth IRA:
- VTI (ER = 0.03%, 99% of portfolio): $83K
- SCHB (ER = 0.03%, 1% of portfolio): $60
401k:
- S&P 500 Index (ER = 0.01%, 100% of portfolio): $170K
Brokerage account (it's a mess)
- VOO - VANGUARD S&P 500 ETF (ER = 0.03%, 20% of portfolio): $52K, 13K gains
- ITOT - ISHARES TOTAL US STOCK MARKET ETF (ER = 0.03%, 16% of portfolio): $43K, 20K gains
- VUG - VANGUARD GROWTH ETF (ER = 0.04%, 16% of portfolio, not re-investing dividends): $43K, 17K gains
- VEA - VANGUARD FTSE DEVELOPED MARKETS ETF (ER = 0.05%, 13% of portfolio, not re-investing dividends)): $36K, $6.7K LTCG
- VTV - VANGUARD VALUE ETF (ER = 0.04%, 6% of portfolio, not re-investing dividends)): $17K, 7K LTCG
- SPY - SPDR S&P 500 ETF (ER = 0.09%, 6% of portfolio, not re-investing dividends)): $15K, 6K gains
- VO - VANGUARD MID CAP ETF (ER = 0.04%, 5.5% of portfolio, not re-investing dividends)): $15K, 4.6K LTCG
- IVV - ISHARES CORE S&P 500 ETF (ER = 0.03%, 5.5% of portfolio): $15K, 5.6K gains
- VTI - VANGUARD TOTAL STOCK MARKET ETF (ER = 0.03%, 5.5% of portfolio): $15K, 1.2K gains
- VOE - VANGUARD MID CAP VALUE ETF (ER = 0.07%, 2% of portfolio, not re-investing dividends)): $6K, 1.9K LTCG
- IWN - ISHARES RUSSELL 2000 VALUE ETF (ER = 0.24%, 2% of portfolio, not re-investing dividends)): $4K, 1K LTCG
- IWO - ISHARES RUSSELL 2000 GROWTH ETF (ER = 0.24%, 1% of portfolio, not re-investing dividends)): $3K, 1K LTCG
- SCHB - SCHWAB US BROAD MARKET ETF (ER = 0.03%, 1% of portfolio): $325, $20 gains
Idea was to keep all S&P500, total stock market, and VUG funds and consolidate remainder to total stock market.
Keeping VUG because the capital gains are too much to realize for me right now.
Statistics: Posted by Trailblazer929 — Fri Aug 23, 2024 6:19 am — Replies 14 — Views 806