Moving Money, Single to Mutual

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OneRad1
Posts: 3
Joined: Tue Sep 12, 2017 10:22 am

Moving Money, Single to Mutual

Post by OneRad1 » Tue Sep 12, 2017 10:36 am

Hi,

I am looking for advice. Here is some basic info, 49 and have 3 specific stocks I think I should look at consolidating and moving: about $70k in PHG, $25k in JFRDX and $25k in JANVX. These are not retirement accounts. The PHG was bought at various prices as low as $20 a share. It is trading today at almost $41.50. I am thinking of moving some or most to Vanguard Total Stock Market (VTSMX) and Vanguard Total International (VGTSX). Yes I know I have too much in a single stock. However, it is employee plan and bought at discount so has been a good deal.

Thoughts?

Thank You

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Duckie
Posts: 5076
Joined: Thu Mar 08, 2007 2:55 pm

Re: Moving Money, Single to Mutual

Post by Duckie » Tue Sep 12, 2017 6:37 pm

OneRad1, welcome to the forum.
OneRad1 wrote:Thoughts?
Since these are not in a tax-sheltered account, have you figured what your gains are and thus your taxes will be when you sell?

ZWorkLess
Posts: 26
Joined: Thu May 04, 2017 8:13 pm

Re: Moving Money, Single to Mutual

Post by ZWorkLess » Tue Sep 12, 2017 7:01 pm

If you have a lot of gains . . .

One small trick I used many moons ago . . . when I had a large amount of all-gains stock since the entire sale amount was essentially capital gains as the basis was like 2c/share and it was selling at around $100/share. . .

. . . was to transfer a bit of it to each of our kids, and then sell a bit of it each year (enough to be under the threshold where it'd be taxed) and then move it to college savings accounts . . . If you have kids or even nieces/nephews/grands/whoever that you like to be generous with, you might look into that for some of it. I did it in the early 90s, and I think I could sell $600 tax free for each kid each year . . . I'm sure the rules are very different now, but would be worth investigating. Some quick googling tells me that the number is now somewhere between $1000 and $2000 per kid per year. It didn't seem like a lot back then, but nearly 20 years later, those little accounts have nice nest eggs that are definitely helping a bit with college.

If you do any substantial charitable giving, look into giving your appreciated stock each year instead of cash. I haven't done this, but I know my mom did. My (very much not expert, please confirm!) understanding was that, say you give $5000 in value of stock to the charity. You get the full $5000 tax deduction, and the charity can then sell it and get the full value, no taxes ever paid.

Again, please confirm that with your tax advisor!

OneRad1
Posts: 3
Joined: Tue Sep 12, 2017 10:22 am

Re: Moving Money, Single to Mutual

Post by OneRad1 » Wed Sep 13, 2017 11:26 am

Thank You. I will continue to research.

mega317
Posts: 1097
Joined: Tue Apr 19, 2016 10:55 am

Re: Moving Money, Single to Mutual

Post by mega317 » Wed Sep 13, 2017 12:58 pm

With regards to the PHG, my advice would rest on how much of your portfolio this is. If 70k is half of your portfolio I would sell as soon as you reasonably can; the tax cost is worth the risk reduction to me. If its more like 2% it doesn't matter at all, and you can explore various ways to reduce the tax burden. If you're low income you might not pay taxes on long-term capital gains. If you're high-income you might consider donating.

ThrustVectoring
Posts: 239
Joined: Wed Jul 12, 2017 2:51 pm

Re: Moving Money, Single to Mutual

Post by ThrustVectoring » Wed Sep 13, 2017 1:02 pm

ZWorkLess wrote:
Tue Sep 12, 2017 7:01 pm
If you do any substantial charitable giving, look into giving your appreciated stock each year instead of cash. I haven't done this, but I know my mom did. My (very much not expert, please confirm!) understanding was that, say you give $5000 in value of stock to the charity. You get the full $5000 tax deduction, and the charity can then sell it and get the full value, no taxes ever paid.
If you have $5000 worth of stock that you donate, you both get to deduct $5000 from your income as well as forgo paying capital gains on the appreciated stock. If you're already planning donations to charity, donating your unrealized capital gains is a fantastic choice.

ZWorkLess
Posts: 26
Joined: Thu May 04, 2017 8:13 pm

Re: Moving Money, Single to Mutual

Post by ZWorkLess » Fri Sep 15, 2017 6:19 pm

ThrustVectoring wrote:
Wed Sep 13, 2017 1:02 pm
ZWorkLess wrote:
Tue Sep 12, 2017 7:01 pm
If you do any substantial charitable giving, look into giving your appreciated stock each year instead of cash. I haven't done this, but I know my mom did. My (very much not expert, please confirm!) understanding was that, say you give $5000 in value of stock to the charity. You get the full $5000 tax deduction, and the charity can then sell it and get the full value, no taxes ever paid.
If you have $5000 worth of stock that you donate, you both get to deduct $5000 from your income as well as forgo paying capital gains on the appreciated stock. If you're already planning donations to charity, donating your unrealized capital gains is a fantastic choice.
Exactly. You worded it much more clearly than I did. Thank you. :)

OneRad1
Posts: 3
Joined: Tue Sep 12, 2017 10:22 am

Re: Moving Money, Single to Mutual

Post by OneRad1 » Thu Sep 21, 2017 11:18 am

Thank You!!

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