I purchased this fund 10 years ago in a taxable account when I knew nothing about investing and have not made additional contributions to it. It is valid at 30K with 8K in long term gains. It is actively managed fund with a 0.34% expense ratio. In deciding between selling to reinvest in an index fund, making an additional 20K contribution to get to Admiral Shares class, and leaving as is, I am leaning towards selling prior to the declaration of distributions on 12/22.
Why is the advice sometimes to sell in a bear market to avoid paying as much in LTG taxes as opposed to selling in a bull market where even if I have to pay taxes on gains, I am still making more money to reinvest? It seems more logical to sell when it high even if you have to pay taxes. What am I confused about?
Why is the advice sometimes to sell in a bear market to avoid paying as much in LTG taxes as opposed to selling in a bull market where even if I have to pay taxes on gains, I am still making more money to reinvest? It seems more logical to sell when it high even if you have to pay taxes. What am I confused about?
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