Author Topic: What to do with REIT  (Read 1501 times)

JumboShrimp

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What to do with REIT
« on: January 01, 2018, 11:10:15 PM »
In my taxable account I have 55K of VGSLX  (Vanguard REIT). It isn't doing all that much price-wise and I take a tax hit with the dividend so I am looking for somewhere else to park it. I was actually planning to use this for a down payment on a rental property, but haven't been able to find anything with numbers I like here in WA so I've given up on that. Own a house so maybe I should consider that the real estate portion of the portfolio and move the money into a stock fund. Anyway the three options I am toying with are:

1) move it to stock (VTSAX)
2) pay off balance on mortgage (about 60k)
3) leave it where it is

Any thoughts?

VoteCthulu

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Re: What to do with REIT
« Reply #1 on: January 01, 2018, 11:38:38 PM »
I would put it in qualified stock funds (like the S&P, total US market, etc.), allocated per my IPS.

Paying off your mortgage is also fine. Historically that option has less ROI, but sometimes the peace of mind is worth it.

rob in cal

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Re: What to do with REIT
« Reply #2 on: January 01, 2018, 11:41:38 PM »
   Well, one nice thing is that the tax rate of your REIT dividends went down today. I've been thinking about this as well, but knowing that my final marginal rate went down from 15% to 12% makes REITs a little more attractive to me.

Mighty-Dollar

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Re: What to do with REIT
« Reply #3 on: January 02, 2018, 12:25:28 AM »
I take a tax hit with the dividend so I am looking for somewhere else to park it. I was actually planning to use this for a down payment on a rental property
This is the problem with real estate. Taxed at a higher rate.
If you're buying property then it's a like-kind transfer.

GGNoob

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Re: What to do with REIT
« Reply #4 on: January 02, 2018, 08:02:42 AM »
Could always move that to stocks in your taxable and purchase REITs in your retirement accounts instead...if you wanted the additional allocation to REITs still.

SeattleCPA

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Re: What to do with REIT
« Reply #5 on: January 02, 2018, 11:53:35 AM »
   Well, one nice thing is that the tax rate of your REIT dividends went down today. I've been thinking about this as well, but knowing that my final marginal rate went down from 15% to 12% makes REITs a little more attractive to me.

+1