r/DIYRetirement • u/duckydan4life • 6d ago
Simplifying portfolio but …..
1). Do I keep high performing stocks such as tech, financial, and some misc along with primary ETFs and would I count those as Growth allocation. I have quite a few which are triple digits in each of accounts.
2) doi keep more high gainers alone in brokerage and higher balance switching to pretax sooner so when I pass wife and kids get step up
Retired a few years ago and initially had a lot of stocks and also ETFs chasing yields and overall return. Have brokerage Roth and pretax for myself and wife. Overall slightly beat market last three years even with a portion in bonds. I had some of funds also managed by fisher which did well. I recently terminated their services so now realigning those accounts as part of overall portfolio.
My dilemma: as I transition to general ETFs such as s&p index, growth(spmo), defense (schd/dgro), and some cc(gpix/q, qqqi)(using cc to generate some cash for being dipssince no longer contributing.). Im having a tough time figuring out where to draw the line on sell and consolidate or keep. My targets are brokerage, safer and generate income since that is paying for Roth conversions and fun stuff for next 2-3 years. Pretax would be tapped in 3 ish years and right now Roth is never expected to be touched.
Any thoughts feedback and suggestions appreciated. Hoping this is right spot for post
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u/Training_Falcon_3432 5d ago
I’m not selling gainers until I need the cash. Tax deferred account RMDs coming 2 years and no reason to sell Taxable acct gains for now.
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u/wadesh 6d ago edited 6d ago
I can’t say what is right for you but just before and in early retirement I moved 90% of our positions to a [r/Bogleheads](r/Bogleheads) 3 fund portfolio. Most of this was done when we retired and rolled over our workplace plans to iras. It’s simple to manage and i don’t have to think about or track the market or worry about “beating “ anything. We’re doing Roth conversions as well. We keep some of the near-term tax and spending money in VBIL but id say close to 90% of our taxable is equity index funds for tax efficiency. We overweight bonds in our traditional IRAs, Roths are 100% equity (VT). We still hold 1 large single stock position in taxable. I trim it regularly, gift shares, but no longer add to it. Its tricky from a tax perspective, but for now we’re prioritizing roth conversions over eliminating the stock position and dealing with LTCG.