Hi all,
I have some individual stocks that I bought before I converted to the Boglehead way. I was wondering when I should sell them. I have owned all of them long enough so that if I sell, it will be a long term gain not a short term gain.
The three stocks I own are:
Apple 4 shares purchased at 223.71
Google 1 share purchased at 559.85
Bank of America 180 shares purchased at 7.22
I bought these while I was 17 so that is why the dollar amounts are so small.
I have been trying to decide when to sell these for a while now.
So do you think I should sell these now or just hold on to them? I keep going back and forth as to what to do.
Thank you,
--Keanwood
P.S Too be clear all new money that I invest is going to vanguard in a good index fund.
When to sell leftover stock?
When to sell leftover stock?
Spend half of your money: for you may die, save half of your money: for you may live.
- BrandonBogle
- Posts: 4467
- Joined: Mon Jan 28, 2013 10:19 pm
Re: When to sell leftover stock?
Keanwood, hard to give a good answer without knowing if this in a taxable account, your tax rates, if you have an tax losses harvested, and trading costs, and how much these shares comprise your portfolio.
That said, I would look at it as such:
- This equates to roughly $4k, with much of being capital gains
- If this is in a taxable account, those gains range from 0% - 18.8% + whatever state taxes you are subject to
- This will represent a very minor part of your portfolio in the long run
If this is in a tax-advantage account (like any flavor of IRA), then sell since there is no tax hit.
If this is in a taxable account, then consider the tax cost. Maybe you are not subject to state taxes on the sell (like Floridians). If you are in the 10% or 15% federal brackets, these gains are tax free.
So if the tax cost is small, go ahead and sell these IF they are a nuisance to you. But only you can determine how much tax cost is worth the nuisance you get from this.
Personally, I have some taxable holdings with gains like yours (I bought Apple at almost the same cost) and I'm just leaving it until I need to sell in retirement.
That said, I would look at it as such:
- This equates to roughly $4k, with much of being capital gains
- If this is in a taxable account, those gains range from 0% - 18.8% + whatever state taxes you are subject to
- This will represent a very minor part of your portfolio in the long run
If this is in a tax-advantage account (like any flavor of IRA), then sell since there is no tax hit.
If this is in a taxable account, then consider the tax cost. Maybe you are not subject to state taxes on the sell (like Floridians). If you are in the 10% or 15% federal brackets, these gains are tax free.
So if the tax cost is small, go ahead and sell these IF they are a nuisance to you. But only you can determine how much tax cost is worth the nuisance you get from this.
Personally, I have some taxable holdings with gains like yours (I bought Apple at almost the same cost) and I'm just leaving it until I need to sell in retirement.
Re: When to sell leftover stock?
The amounts are relatively small and perfect for giving away to chairity now or the future. It probably doesn't matter what you do with them: Sell Now or Donate Later.
However, the longer you wait to sell, the more tax you will potentially pay. The longer you wait to donate, the bigger the deduction you will potentially get.
So that leads to the best choice: Sell something now and donate something later.
However, the longer you wait to sell, the more tax you will potentially pay. The longer you wait to donate, the bigger the deduction you will potentially get.
So that leads to the best choice: Sell something now and donate something later.
Re: When to sell leftover stock?
Not your question, but I have a housekeeping item--If you purchased these stocks when you were 17, were they originally set up as a custodial account? (And by now they have been transferred over to you as account owner?) If they aren't, you'll want to make sure that has been done while you are mulling over your decision.keanwood wrote:I bought these while I was 17 so that is why the dollar amounts are so small.
Re: When to sell leftover stock?
With the markets near all-time highs I would suggest to sell now. Sure individual stocks will vary but the overall climate impacts individual prices. If the water rushes out of the harbor all the boats go lower. Don't fight the tide.
The closest helping hand is at the end of your own arm.
- SmileyFace
- Posts: 9184
- Joined: Wed Feb 19, 2014 9:11 am
Re: When to sell leftover stock?
I agree with 123 - sell now. Market is at a all time high - all three of these stocks are up for the year - a correction could happen at any time causing Apple and Google to fall at a rate greater than the rest of the market. If I were you - I'd sell today and re-allocate with end-of-day fund purchases.