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I've made a series of poor decisions investing in the stock market and after 10 years am getting out of it completely. Most of what I had was decimated from margin calls from the oil crash at the beginning of this year but still have eight stock holdings left, between 100-200 shares each with a total account value of ~$3000. All of these stocks except one are tanking and probably will never recover. The only one not tanking has barely gone up at all.
Initially I was thinking I would sell off a portion of them each year to pay less in taxes but I'm really not too clear on how that works. It's my preference to liquidate what little I have left (everything) and close my stock account just to put everything behind me and move on; wanted advice from others before doing that though.
perhaps you are one of those that would benefit from a money manager so you keep your hands off the money and let time do its thing .
anyone playing with margin and sector bets better be doing it not with their core portfolio but with money they can speculate with and afford to lose because eventually most do .
However, getting there from where you are is far more complex. I wouldn't even know where to begin, and I doubt anyone online can help guide you out from the ditch you're in. I think some professional assistance is called for.
What I'd really like to know is whether or not I'd be paying less in taxes if I sell off little by little each year. I would really like to sell everything and be done with it but if I'm going to be paying significantly more in taxes I'll sell off gradually.
no one can answer that but you . it all depends on what your tax brackets are and how much selling is involved.
but here is a tip. never let the tax tail wag the dog. by waiting to save a few bucks in taxes the losses may mount making the taxes a drop in the bucket .
What I'd really like to know is whether or not I'd be paying less in taxes if I sell off little by little each year. I would really like to sell everything and be done with it but if I'm going to be paying significantly more in taxes I'll sell off gradually.
If I remember correctly you can claim a loss of $7,500 each year against your taxes. At least in Wisconsin. Don't take this as truth and consult someone but it gives you an idea of you're looking at. My mom inherited stocks that gave her tax breaks for the next 5 years but after that the rest expired.
I've made a series of poor decisions investing in the stock market and after 10 years am getting out of it completely. Most of what I had was decimated from margin calls from the oil crash at the beginning of this year but still have eight stock holdings left, between 100-200 shares each with a total account value of ~$3000. All of these stocks except one are tanking and probably will never recover. The only one not tanking has barely gone up at all.
Initially I was thinking I would sell off a portion of them each year to pay less in taxes but I'm really not too clear on how that works. It's my preference to liquidate what little I have left (everything) and close my stock account just to put everything behind me and move on; wanted advice from others before doing that though.
I wouldn't see as it matters all that much what you do with 3k. It's not much money.
no one can answer that but you . it all depends on what your tax brackets are and how much selling is involved.
but here is a tip. never let the tax tail wag the dog. by waiting to save a few bucks in taxes the losses may mount making the taxes a drop in the bucket .
It also depends on his cost basis. If he is really getting crushed he probably won't have any taxes to pay because his cost basis is higher than his investment value.
If I remember correctly you can claim a loss of $7,500 each year against your taxes. At least in Wisconsin. Don't take this as truth and consult someone but it gives you an idea of you're looking at. My mom inherited stocks that gave her tax breaks for the next 5 years but after that the rest expired.
the state has nothing to do with the amount . federal tax law allows you to write off up to 3k of capital losses against ordinary income . the rest gets carried over .
perhaps you are one of those that would benefit from a money manager so you keep your hands off the money and let time do its thing .
anyone playing with margin and sector bets better be doing it not with their core portfolio but with money they can speculate with and afford to lose because eventually most do .
This^^. X10
Like I say, if you aren't going to hire someone to manage your money, you should just buy a semi-boring balanced mutual fund that holds a mix of stocks and bonds. The ones I always suggest on these fourms:
Vanguard Wellington (cheapest actively managed balanced fund out there, great long term returns).
Dodge & Cox Balanced (next cheapest fund family after Vanguard. Can be more volatile than Wellington, but has better long term returns)
Oakmark Equity & Income (Great long term returns, although has been mediocre the last few years. Holds up well compared to most balanced funds in bad times)
Mairs & Power Balanced. (Small asset base gives this fund flexibility. Held up well in the last 2 bear markets. Very low turnover usually means tax efficiency).
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