Quote:
Originally Posted by Rain Man
I've never thought about this before, but I wonder if share price makes a bigger difference in retirement portfolios. If I'm retired and I want to take out my appreciation for living expenses, it may be hard to do that if the stock is really expensive and I don't have a lot of shares. I'd have to sell off more than I want in order to liquidate some of it.
|
I think this stuff is way easier in a retirement account. Have a stock that's 100k/share. Sell it. Remove 50k for expenses, then buy something else in the retirement account with the leftover 50k or fractional shares for half the 100k. In a retirement account if your fractionals get liquidated during an account transfer, you just don't have that money in the market for a short period. As soon as it lands at your new brokerage you can repurchase.