I think it depends. If you have shares with small gains, then yes.Admiral, thanks for the reply. I’ve just been building up the Brokerage account as we have been renting (and after all tax advantaged accounts are maxed). Brokerage is all in VTSAX. I would have to check exact numbers but I believe total gain is around $120K. Are you recommending selling enough/paying the capital gain tax to pay down the mortgage?Why do you feel you need over half a million dollars in a taxable account? What is that money for? It's creating significant tax drag.
I'd use that to pay down a mortgage of that rate. Assuming all tax advantaged accounts are fully maxed. If not, max those, then pay it down.
This account is throwing off at least $10k in taxable dividends so that is something to consider. I probably would not, for example, pay tax on a $100k capital gain in order to pay down a 6% mortgage. But you could spread out the sales (or take losses, if any exist) to pay it down slowly. Certainly I would stop directing any money toward the brokerage account at this point.
Statistics: Posted by Admiral — Mon Apr 22, 2024 6:12 am — Replies 11 — Views 875