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Take AAPL out of rollover 401K?

Posted: Mon Sep 14, 2020 12:17 pm
by ilan1h
About 9 years ago I experimented on a theory of putting a high growth stock in tax-deferred (not sure why I did this). I bought a moderate amount of AAPL (Apple) and parked it in a rollover IRA. It's gone up about 10X. However, if I had initially invested it in a taxable account I would only have had 20% gains tax when I sold it. At 60yo I am a few years away from retirement but will be in the 32% bracket when I retire. So I assume that this was a mistake? I was thinking of selling the AAPL in the IRA and repurchasing it in taxable. 40% of my entire portfolio is in munis (taxable account) and 10% in BND (total bond) which is in tax deferred. I could get more BND in the IRA if I sold AAPL and rebought it in taxable. Currently my equities position is 30% (and AAPL is about half of that). I know that that's risky but AAPL started out as an indulgence (a playful theory) that wound up being a real thing. I am reluctant to sell it. Would apprecate opinions on the advisability of shifting AAPL to taxable to free up space for more BND in the IRA.

I should also mention that despite age of 60 I would prefer my portfolio on the very conservative side.

Equities (20%)...AAPL, VBR, DLS
Reits (5%)......VNQ
Intl (5%).......VWILX, VEU, VFWAX
Munis (30%)....Vang CA interm
Bonds (15%)...BND, Wellesley
Cash (25%)

Re: Take AAPL out of rollover 401K?

Posted: Mon Sep 14, 2020 3:12 pm
by firebirdparts
It’s never a mistake to get rich. If you’re in the 32% bracket, just do the best you can. As an index investor I feel like I have enough Apple already. I could see selling it in your situation, but buying it again right now would not appeal to me at all.

Re: Take AAPL out of rollover 401K?

Posted: Tue Sep 15, 2020 1:33 am
by mhalley
Switching some or all of the aapl is certainly reasonable if you still believe in the stock. Keep in mind that owning a single stock is risky, and you should keep it below 10% of your portfolio.