A few years ago I bought VFSVX/VSS in taxable because I didn't have tax-advantaged space available. Aside from my bond holding in my 401k, this fund is the next least tax-efficient investment I hold. Things have changed, and now I have plenty of Roth IRA space available because my new employer allows mega backdoor Roth IRAs.
I intend to hold this fund for the long term. My math has worked at as follows:
- I estimate that I will pay $80 in tax for combined qualified/unqualified dividends this year. I paid ~$70 last year.
- If I sell the entire position right now, I will incur an estimated $870 in tax given the cost basis and gains over the past few years.
Am I think about this in the right way, or am I being ridiculous?