Investment Portfolio Allocation
Hello Terry; I am 71 years old and my financial advisor currently has my portfolio at about 65% stocks (with the remaining mostly in bonds). I advised him I would be more comfortable with a more conservative allocation of about 50% stocks but he said that since I have approximately $60K in capital gains in my portfolio (I’m not sure what this means), there are some significant tax implications associated in changing my allocation and his opinion, recommended I stay put. Am I stuck at keeping my stock allocation at 65% or face some heavy tax consequences? Thank you .
Terry Says
If your stocks are held OUTSIDE a retirement account, there would be capital gains taxes. And those could increase your income, and thus your Medicare Part B and D premiums! So you need some independent advice, looking at your entire tax and income picture in retirement, your estate plan (if you hold the stocks till death, there is NO gains tax for your heirs).
Yes, it’s complicated. I suggest a review by someone you can trust — a fee-only fiduciary who can look at everything in context.
Read this: https://www.terrysavage.com/pam-krueger-wealthramp/
You don’t have to leave your current advisor to get a review. Sort of like a second opinion on surgery from another doctor!
