Trying to simplify portfolio, can someone point me to the right keywords

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Sysyphus
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Joined: Sat May 16, 2020 2:22 am

Trying to simplify portfolio, can someone point me to the right keywords

Post by Sysyphus »

Hello all,

Like the subject says, I am trying to simplify my portfolio. I have a large holding of VOO, I later started buying VXF to mimic VTI. I would like to get out of VOO/VXF and move to VTI.

I know there are rules about this, but my memory is rubbish. but I can't think of the keywords to search the forum. I know i've seen this discussed before. Can anyone help with this?

Thanks.
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arcticpineapplecorp.
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Joined: Tue Mar 06, 2012 9:22 pm

Re: Trying to simplify portfolio, can someone point me to the right keywords

Post by arcticpineapplecorp. »

this is generally recommended (the Three fund portfolio):
https://www.bogleheads.org/wiki/Three-fund_portfolio
It's "Stay" the course, not Stray the Course. Buy and Hold works. You should really try it sometime. Get a plan: www.bogleheads.org/wiki/Investment_policy_statement
retiredjg
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Re: Trying to simplify portfolio, can someone point me to the right keywords

Post by retiredjg »

Are you talking about a wash sale caused by selling something in a taxable account at a loss?
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Watty
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Re: Trying to simplify portfolio, can someone point me to the right keywords

Post by Watty »

Sysyphus wrote: Fri Nov 20, 2020 4:51 pm I know there are rules about this, but my memory is rubbish. but I can't think of the keywords to search the forum. I know i've seen this discussed before. Can anyone help with this?
If they are in a taxable account then "capital gains tax" is an important topic to research. The problem is that if you sell your current mutual funds so that you can reinvest that money then you could have a large tax bill.

Sometimes because of taxes it is best to leave your money where it is instead of trying to build what you would consider to be an ideal portfolio.

You may also want to set those mutual funds so that they are not automatically having the dividends and capital gains distributions automatically reinvested so that you are not buying any more of the funds that you do not want to keep for the long term.
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