Author Topic: Longing for the days when I figured CG distributions must be additional gains  (Read 542 times)

JoePublic3.14

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Sigh, I have one old legacy mutual fund account in taxable that just presented me with the opportunity to pay taxes on about $20k of capital gains, almost half of which are short term. (We are in a pretty high marginal rate, poor us)

I remember when I didnít know much of anything, except investing was good, and seeing capital gains distributions being reinvested and thinking Ďthatís great! It must be free money!' Ah the blissful relaxation of floating around in my pool of ignorance.

At least now those funds are on their way to Vanguard and VTSAX, where (fingers crossed) they will grow a bit more tax efficiently.

So just a reminder to pause briefly before starting a position in taxable and consider the future.

If any one cares, the fund is T.Rowe Price Science and Technology. It has been a crazy good fund since I started stashing money in it in 2009. Eventually I'll get out of it by donating the shares. Until then Iíll just keep letting them mess with my tax planning.

lhamo

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If you like the fund you could always switch to having it in your retirement accounts rather than your taxable account.  Punts the CG question until you are in RMD territory for trad retirement account, at least.

JoePublic3.14

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If you like the fund you could always switch to having it in your retirement accounts rather than your taxable account.  Punts the CG question until you are in RMD territory for trad retirement account, at least.

Not without realizing a sizable taxable gain. The plot on the website is funny. About $23k invested, $80k withdrawn, $75k left. I like that math in generalÖ.especially with that $80k probably up 50% or more at Vanguard.

So, not willing to take a tax hit all a once, so Iíll just keep redirecting the distributions to VTSAX each year. Completely house money, woah is me.