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This is why the first order move when "rebalancing" is to just adjust your allocations of new investment money from your post tax income. e.g. if your stocks a
by anonporridge 3y ago
This is why the first order move when "rebalancing" is to just adjust your allocations of new investment money from your post tax income.
e.g. if your stocks and bonds are doing very well and have inflated beyond their allocation, stop buying them and divert all of your savings to cash and gold/bitcoin.
- jandrewrogers 3y agoYes, and also you can sometimes select tax lots that minimize or completely eliminate the net tax exposure. This does have practical limits though e.g. if the portfolio greatly exceeds income or all of your tax lots of consequence are deep into positive territory.
- anonporridge 3y agoBoth very good problems to have.