What portfolio adjustments are you making ahead of "fiscal cliff", elections, et

[murphy_p_t]

I recently learned that I'm in a tax bracket where long-term capital gains are taxed at zero percent (0%). This is currently scheduled to change in 2013. I know its recommended to keep LTT in IRA, but I ignored this advice when setting up PP initially. I am now moving in that direction.

So...I have decided to sell LTT in taxable & purchase in IRA account ahead of this higher tax rate. (I'm also thinking about running LTT maybe 15 to 20% rather than 25%) to raise cash.

What changes are you contemplating ahead of "fiscal cliff"?

[Pointedstick]

Keep in mind your state's income tax rate. That'll snag you unless you're one of the lucky ones who lives in a state that doesn't tax capital gains either.

Personally, I'm not doing anything, since each of my accounts has a full PP in it, so I feel like I'm pretty well hedged for whatever happens. I'm not altogether convinced that we're going to fall off the cliff. I predict that after much squawking and bickering, congress will yet again kick the can down the road another 6 months once they return from their recess. In a game of chicken, the only thing the two players can agree on is to delay the train.

[Libertarian666]

I recently learned that I'm in a tax bracket where long-term capital gains are taxed at zero percent (0%). This is currently scheduled to change in 2013. I know its recommended to keep LTT in IRA, but I ignored this advice when setting up PP initially. I am now moving in that direction.

So...I have decided to sell LTT in taxable & purchase in IRA account ahead of this higher tax rate. (I'm also thinking about running LTT maybe 15 to 20% rather than 25%) to raise cash.

What changes are you contemplating ahead of "fiscal cliff"?

I took advantage of this last year to sell and immediately repurchase some highly appreciated securities that I had held for more than a year (outside a retirement account, of course). To the best of my knowledge, the wash sale rules don't apply to sales that have a gain, so the main effect of this was to reset my cost basis higher, thus reducing my taxable gain later.

Of course, check with your tax advisor before doing anything like this.

[murphy_p_t]

I recently learned that I'm in a tax bracket where long-term capital gains are taxed at zero percent (0%). This is currently scheduled to change in 2013. I know its recommended to keep LTT in IRA, but I ignored this advice when setting up PP initially. I am now moving in that direction.

So...I have decided to sell LTT in taxable & purchase in IRA account ahead of this higher tax rate. (I'm also thinking about running LTT maybe 15 to 20% rather than 25%) to raise cash.

What changes are you contemplating ahead of "fiscal cliff"?

I took advantage of this last year to sell and immediately repurchase some highly appreciated securities that I had held for more than a year (outside a retirement account, of course). To the best of my knowledge, the wash sale rules don't apply to sales that have a gain, so the main effect of this was to reset my cost basis higher, thus reducing my taxable gain later.

Of course, check with your tax advisor before doing anything like this.

I read recently that this has to be done outside the 31 days either before or after to avoid a "wash sale".

[MediumTex]

I'm not doing anything.

[craigr]

Doing nothing. Also not adjusting for the Mayan end of the world either.

[Libertarian666]

No, as far as I know the wash sale rules apply only to sales at a LOSS. Sales at a gain are exempt, even if your tax bracket is 0%.

I just did it again, this time in the 15% bracket, as that is better than selling in the future in the 20% bracket.

[AdamA]

Any adjustment you make for something like a "fiscal cliff" will probably just end up hurting you.

If you'd have sold LTT's last year prior to S&P's downgrade, you'd have missed out on big gains.  I think the same applies here.  These stories in the financial media are almost always irrelevant, and even more often inactionable.  Just leave things as they are.

[6 Iron]

Nothing specific, other than wondering if there will be an asset sale based on panic selling.

[j831526]

Nothing specific, other than wondering if there will be an asset sale based on panic selling.

I think this is a real possibility, and we may see the case where ALL asset classes (possibly excepting cash) take it in the ear. Thanks to B52 Ben's liquidity pump, NOTHING qualifies as cheap right now. Everything is at risk of panic dumping. All the financial gurus are saying not to worry because the government will do something before we go over the cliff. I don't have much faith in the powers that be. I think the BEST we can hope for is a kick the can answer which is Washington business as usual. Unless the market really isn't expecting something better than this, there's a lot of risk currently not priced in.

My personal problem is I just recently (like last week) discovered the HBPP investment strategy and am eagerly looking to get started. I'm just not willing to jump in the boat with the cliff dead ahead and no faith in the captain or the crew. I'm planning to stay in cash until there's some resolution or significant correction in asset prices.

If anyone's got better ideas, please fire away!!

Thanx

[Greg]

Nothing specific, other than wondering if there will be an asset sale based on panic selling.

I think this is a real possibility, and we may see the case where ALL asset classes (possibly excepting cash) take it in the ear. Thanks to B52 Ben's liquidity pump, NOTHING qualifies as cheap right now. Everything is at risk of panic dumping. All the financial gurus are saying not to worry because the government will do something before we go over the cliff. I don't have much faith in the powers that be. I think the BEST we can hope for is a kick the can answer which is Washington business as usual. Unless the market really isn't expecting something better than this, there's a lot of risk currently not priced in.

My personal problem is I just recently (like last week) discovered the HBPP investment strategy and am eagerly looking to get started. I'm just not willing to jump in the boat with the cliff dead ahead and no faith in the captain or the crew. I'm planning to stay in cash until there's some resolution or significant correction in asset prices.

If anyone's got better ideas, please fire away!!

Thanx

I went through the same line of thinking before investing in the HBPP. Mine was awaiting a speech Bernanke made at one point and I thought there was too much volatility around it. Inevitably though, we will go through these periods of market risk many many times. I'd just say jump in with a portion or go fully in. We have no idea how investments will do but you do know though you can't participate in either the gains/losses unless you're playing the game.