Quote:
Originally Posted by Rain Man
I've been in a bit of a conundrum recently. My biggest holdings are GOOG, NVDA, and MSFT. They're done really well for me.
I'm wanting to pivot more conservative, and I feel like I should lock in some of the gains, but man, I hate paying capital gains tax. I don't want to sell and pay taxes, especially when I'll probably put them in more conservative stocks. Mathematically, I should just keep riding them, but a tech crash would be painful if they were to drop 30 or 40 percent.
In full disclosure, I've been buying CDs like crazy recently, at an average rate of about 5.1 percent. If you add all those up, it's about the same amount that I have (combined) in GOOG and NVDA. So I have a conservative counterbalance.
I'm talking myself into not selling as I type this, but I really don't want to ride into a bear market with so much tech. I'd rather avoid big losses these days than make big gains. I'm torn.
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I actually rebalanced my portfolio earlier this year into 50/50 growth portfolio vs. dividend portfolio as a hedge per guidance from my advisor. CDs/bonds have been crazy this year. I've been putting some money in for the first time this year.
All of this is pre tax Roth for me so taxes aren't a factor. I think there are transaction fees involved but those are all a flat fee.
Personally, I wouldn't liquidate your positions, but selling off a chunk after a growth spurt is not a bad idea to lock in some of your gains.