Half of my investments are in msft; how to diversify
I want to diversify and invest in VTSAX like the other half. But selling will incur a huge tax bill. What to do?
Google lIllIIIlI Jun 16, 2023
It’s generally inaccurate to think that you pay more in taxes if you sell long term holdings to diversify. The government will take its tax at *some* point, either when you diversify now or when you sell 20 years later. Just diversify if it’s long term gains and pay the tax now. Taxes on investments will probably go up in the future anyways, no way they’re coming down. Commutative property of multiplication.
If you dont want to pay that tax, then you keep it forever. You answered your own question. Or pay tax then diversity etf.