Take AAPL out of rollover 401K?

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ilan1h
Posts: 855
Joined: Mon Oct 22, 2007 3:40 pm

Take AAPL out of rollover 401K?

Post 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%)
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firebirdparts
Posts: 1882
Joined: Thu Jun 13, 2019 4:21 pm

Re: Take AAPL out of rollover 401K?

Post 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.
A fool and your money are soon partners
mhalley
Posts: 8506
Joined: Tue Nov 20, 2007 6:02 am

Re: Take AAPL out of rollover 401K?

Post 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.
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