My parents have a real cluster of investments including life insurance policies, annuities, significant cash holdings and a 401k. I'm trying to help them navigate through this and clean things up. First up is the cash holdings and the taxable accounts with high expense ratios.They also have ~$14k invested in Microsoft and Intel (actually a significant chunk of their total portfolio.). If I sold all of this they would have around $9k in LTCG. Am I correct in thinking that if I sell this and their taxable income (line 43) is under $75k they will pay 0% on this gain? They are right at the limit but they can up their 401k contribution and IRA contribution to get below.
Once I sell everything I plan on putting it in the Vanguard 2020 Target fund.
Does this sound like a reasonable plan to you?