Personal Finance and Investing

progree

(11,709 posts)

15. True. I wish it was all in IRAs (prefereably Roths) so I don't have to worry about tax implications

Fri Feb 28, 2020, 10:53 PM

Feb 2020

when I merely change allocations or switch from something to something else.

And while it was great (in my regular accounts) utilizing the capital losses to offset capital gains and even ordinary income over the following 9 years or so, I now have a big time bomb of huge unrealized capital gains because the new stuff I bought after selling the old stuff has a really low basis, given that it was purchased around the market bottom.

None of what you describe can be used in a Tax Qualified account. That is to say, realized losses in an IRA or 401(k) don't help like you experienced.

Edit history

Please sign in to view edit histories.

Recommendations

0 members have recommended this reply (displayed in chronological order):

16 replies

= new reply since forum marked as read

Highlight:

Don't panic [View all] question everything Feb 2020 OP

"Never sit around discussing things rationally when the situation calls for panic"-George brewens Feb 2020 #1

Note that each of your market drops was progressively worse than the last. empedocles Feb 2020 #2

Amount, not percentage question everything Feb 2020 #5

Big pic, each drop from a general investment perspective, was worse than the last. empedocles Feb 2020 #7

Thank you Delphinus Feb 2020 #3

If you have a long time horizon, that is sound advice... Moostache Feb 2020 #4

Agree. And there is adequate amount of cash in our taxable account question everything Feb 2020 #6

Same here. safeinOhio Feb 2020 #8

.. question everything Feb 2020 #9

I use my dividends for income in my old age, but safeinOhio Feb 2020 #10

Events like this are why it is a good idea to keep some cash A HERETIC I AM Feb 2020 #11

A good plunge is an opportunity to do some trimming and pruning with reduced cap gains progree Feb 2020 #12

Perfect! A HERETIC I AM Feb 2020 #13

True. I wish it was all in IRAs (prefereably Roths) so I don't have to worry about tax implications progree Feb 2020 #15

On the inheritance - I was lucky, my parents both believed in equities because of its vastly vastly progree Feb 2020 #16

And... in praise of our 50-50 stock bonds question everything Feb 2020 #14