Quantcast
Channel: Bogleheads.org
Viewing all articles
Browse latest Browse all 6337

Personal Investments • What is your rebalance threshold? When do you gain harvest?

$
0
0
OP,

1) What is your rebalancing policy? 5/25 band based rebalancing or annual rebalancing?

2) Will you be on the ACA health insurance? If you tax gain harvest, you may lose the ACA subsidy in the process.

3) I do both 5/25 and annual rebalancing.

4) If I am not on ACA insurance, I tax gain harvest at 0% long term capital gain tax rate.

KlangFool
I'll be on COBRA for the first 18mos following retirement, so ACA subsidies arent in play for this year at least. TBH, I hadnt thought about a rebalancing policy until we got this close to retirement being a "real thing". My health is failing me so I'll likely lose/leave my job this year. Right now I dont have a ton of taxable income as most of it is going into 401k and HSA accounts at work. It's another reason I thought it might be worth doing. We will have ~75K in div/interest this year based on Schwabs guess, so I dont know that I'll have a lot of 0% space.
1) In general, at retirement, your withdrawal instead of contribution will keep your AA within the target range.

2) You should turn off your automatic reinvestment of your dividend/distribution at your taxable account. Spend those money first without generating additional tax burden.

KlangFool

Statistics: Posted by KlangFool — Fri Feb 09, 2024 12:35 pm — Replies 6 — Views 222



Viewing all articles
Browse latest Browse all 6337

Trending Articles



<script src="https://jsc.adskeeper.com/r/s/rssing.com.1596347.js" async> </script>