If dividends have been consistently reinvested, it’s possible that the remaining embedded gain on the existing assets is close to zero. Taxes would have been paid on the dividends over the years.beyou wrote: ↑Sun Feb 11, 2024 1:02 pm
If the 21 year old is in a low tax bracket, as is often the case for someone that age, it is possible to sell at zero capital gains tax.
You may need to gradually sell over a period of time to spread out the gains and sell them all at 0 tax. No need to sell all at once.
If the current tax hit from selling all funds is small or zero, I’d much rather see them rip off the bandaid, ditch all the current funds, and start with a clean slate.