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I have finishing harvesting my few losses for 2010 in my taxable account (nice having a 22% gain but a $1500 loss to write off during tax time!) and am thinking about doing some additional farming the first week in January. This time I would sell a little of my best performing stocks that have been held for > 1 year and have the most gains vs basis. The idea here is to pay 20% capital gains instead of 33% income tax. I think I need to do this because I am very near 100% equities right now. If we are lucky enough to get a big pullback like in 2009, I would like to have a goodly chunk of change ready to jump into the market with both feet. Some of the stocks that are good buys now at $30 to $40 were trading at $5 in that 2009 dip. Opportunity like that doesn't come along often, but I would hate to miss it.
What do you think? Maybe a 10% harvest and sock the money away in high (lol) yield savings account?
What do you think? Maybe a 10% harvest and sock the money away in high (lol) yield savings account?