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Timing the exchange?
Taylor Larimore
11-14-2006, 12:45 PM | Post #2277584
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Hi again, Robb:
Based on the information you provided, you have four factors to consider about when to make the exchange:
1, The 2% redemption fee which ends in about 80 days. This suggests you should wait.
2. Tax on the distribution in December which can be avoided by selling before then.
3. About 50% higher tax on short-term capital gains compared with long term capital gains. If your profit is substantial, consider waiting until 12 months after purchase.
4. The advantage of waiting until January so that capital gain taxes can be postponed into next year.
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Other factors:
Your primary decision is your allocation between stock/bonds/cash.
Secondary is exchanging to more tax-efficient funds/ETFs.
I would not base a decision on someone's market forecast.
I hope these ideas help.
Best wishes.
Taylor
Originally posted in thread: 54561
Topics
Benefits of passive
distributions
exchange
Funds
redemption fee
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