Gyroscopic Investing

Opened a brokerage extension within a T-IRA to setup 10% of my PP. The remaining 90% is invested in a taxable account. I also have a long-term unrealized gain in LTTs that I would like to sell (7.5K) and re-buy (9.0K) within the T-IRA to maintain the 4 x 25 allocation. This leaves a remaining 5.5K or 5% of the overall PP to allocate to GLD. So, I end up with GLD and TLT in T-IRA, but no SPY. Should I split the GLD into SPY (2K), GLD (3.5K) and call it a day or leave it as is?

To summarize, would you sell LTT in taxable and buy in tax-deferred when you have a long-term capital gain?

buddtholomew wrote: To summarize, would you sell LTT in taxable and buy in tax-deferred when you have a long-term capital gain?

Are you talking about hitting a rebalancing band or just a juicy-looking gain? The latter, I guess, since you're re-buying.

I'll leave it to the smarter & more experienced to answer your question, because I struggle with my own allocation. (Like, I don't know if I should sell stock to fund my 401(k) or if I should just deplete my cash allocation and then feel silly holding cash in tax-deferred).

I approached the transaction slightly differently. Rather than pay the 15% tax, I used specific ID and selected lots that would minimize the taxes due. I then purchased the equivalent number of shares in the tax-deferred account.

Hopefully this makes sense...