Greeting all,
I'm looking for advice and thoughts on whether or not (and if so how) to correct for a situation in my portfolio.
Some details (happy to provide more):
Age: 43
Total Portfolio: 1.5M (90/10 stocks/bonds)
Goal: Retire in 12 years
My specific question relates to a pair of stocks I have (ADP and CDK) which currently comprise about 13% of my total portfolio. The rest of the portfolio is in index funds. My position in these stock built up over the course of a decade of ESPPs and stock awards. They are held in a DRIP style account. This is a taxable account.
Thankfully, these stocks have done very well over the years, but now that I'm trying to more specifically target retirement - I feel like this is too much risk. The issue is that to sell them (and rebalance), I'll pay 15% LTCG tax on ~$124k in gains. That's over $18k that *could* be earning me additional growth over the next 12 years (of course the stock could also take a dive...).
I'm not sure if I'm looking at this right, or even exactly how to determine if selling is the right move. Any thoughts, advice, or clarifying questions are welcome!
Thanks,
-G