Quote:
Originally Posted by valuemkt
No.. I am not selling to avoid perhaps higher taxes in the future. If you have CORE holdings in taxable accounts that have gains, I see no reason to "anticipate" what our lawmakers are fumbling with .. Not to mention that, from an investment perspective, it makes no sense. My adage is never pay taxes today on what you can defer until tomorrow or the next day. If you don't sell, you dont pay taxes.
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didn't think you had too. However, the original question was not a market equity / stock sale in a taxable account question. The question was what to invest in after liquidating / selling an LLC which no longer wants to be managed, and to take the excessive gains now before losing them.
However, your thesis is only tax avoidance optimal, and not necessarily wealth optimization. Wealth optimization should include harvesting gains when the investment valuation is maximized, and the future potential gains are near zero or negative, or the investment horizon is shortening quickly.
There are plenty of studies/analysis for harvesting gains and paying taxes for long term wealth maximization. The key to remember is that tax payments increase as success increases. The more successful you are, the more you may have to pay in taxes for the next investment opportunity to continue being successful. Being successful is the key, tax avoidance is generally a secondary goal or necessary byproduct at times.
But everyone has their own strategy, and many investment strategies work, until they don't. And passive index funds will work, until they don't. Why, because all finance theories don't scale linearly forever. There are always growth limits, coupled with human error and greed.
good luck! we all need it in retirement.