Selling Funds

[firehawkocean]

Since I am in the 33% tax bracket and live in California (subject to state income tax), does it matter which method I use when selling mutual funds? Vanguard shows 3 types:

Average cost (AvgCost). Calculates the average cost per share for each share you own.
First in, first out (FIFO). Shares with the oldest purchase date will be sold first.
Specific identification (SpecID). You choose the shares (or lots) to sell, which will determine your capital gain or loss.

I am planning on buying and holding. I just ask this for future reference.

[bjl584]

I'm not a tax expert, but I would think that if you are buying and holding for the long term, then what method you sell your funds should be dependant upon your particular financial situation at the time that you sell them.

Your tax braket, and tax law for that matter, will most certainly change in the future.

[disneysteve]

Which method you use will depend on which is the most advantageous at the time in order to minimize the tax implications of the sale. You can't answer the question today.