I foolishly have all of my assets in RH right now. Would like to move at least half of it somewhere else for a transfer bonus. Which platforms currently offer a good promotion?
Thank you
My situation is that I have large cap gains from selling AMD (cap gains alone of 570K+ in 2026) with a good amount of short term sales. I have sold so much, because 1) I am moving to a higher tax state with much higher W2 income in the latter half of 2027 2) I am hoping to buy a house within the next 2-3 years and 3) did feel that the market was euphoric.
However, I've been fretting over the impending tax bill which is going to be enormous. That's when I started looking into direct indexing.
As I understand, direct indexing has a short-term benefit for those with very large taxable portfolios, such as from windfalls. I would probably only do this for this year, because I have so much capital gains this year and I want to defer some of that to the first half of 2027 when I am still in a lower tax state (and overall still making much less than I would be starting in 2028). As I said before, my long term goal is liquidation of the majority to fund a house purchase in 1-3 yrs.
My plan would be to keep approximately 40 percent of my cash for direct indexing and 60 percent as cash/SGOV (which would be reserved for tax payment and possible re-entry of AMD in case of crash).
With "diy" direct indexing, my concerns would be imperfect tracking of the index and not creating enough dispersion to meaningfully tax harvest.
My current plan would be to choose a few sectors/indices to track, generally putting less weight on tech and more on defensive/commodity/cyclical because I still hold 20 percent AMD and my overall thesis/goal is now defensive ie. being vigilant about possible market downturns.
I would probably buy 2-3 individual representative stocks in the sector (to create dispersion) along with the index (possibly also including foreign assets and some materials like gold, platinum). Sell when there's more than 8 percent loss to capture loss, and rebuy similar. Keep the winners until I need the funds for house purchase in 1-3 years. Does this sound reasonable?
Thank you for your advice in advance!
My situation is that I have large cap gains from selling AMD (cap gains alone of 570K+ in 2026) with a good amount of short term sales. I have sold so much, because 1) I am moving to a higher tax state with much higher W2 income in the latter half of 2027 2) I am hoping to buy a house within the next 2-3 years and 3) did feel that the market was euphoric.
However, I've been fretting over the impending tax bill which is going to be enormous. That's when I started looking into direct indexing.
As I understand, direct indexing has a short-term benefit for those with very large taxable portfolios, such as from windfalls. I would probably only do this for this year, because I have so much capital gains this year and I want to defer some of that to the first half of 2027 when I am still in a lower tax state (and overall still making much less than I would be starting in 2028). As I said before, my long term goal is liquidation of the majority to fund a house purchase in 1-3 yrs.
My plan would be to keep approximately 40 percent of my cash for direct indexing and 60 percent as cash/SGOV (which would be reserved for tax payment and possible re-entry of AMD in case of crash).
With "diy" direct indexing, my concerns would be imperfect tracking of the index and not creating enough dispersion to meaningfully tax harvest.
My current plan would be to choose a few sectors/indices to track, generally putting less weight on tech and more on defensive/commodity/cyclical because I still hold 20 percent AMD and my overall thesis/goal is now defensive ie. being vigilant about possible market downturns.
I would probably buy 2-3 individual representative stocks in the sector (to create dispersion) along with the index (possibly also including foreign assets and some materials like gold, platinum). Sell when there's more than 8 percent loss to capture loss, and rebuy similar. Keep the winners until I need the funds for house purchase in 1-3 years. Does this sound reasonable?
Thank you for your advice in advance!
My situation is that I have large cap gains from selling AMD (cap gains alone of 570K+ in 2026) with a good amount of short term sales. I have sold so much, because 1) I am moving to a higher tax state with much higher W2 income in the latter half of 2027 2) I am hoping to buy a house within the next 2-3 years and 3) did feel that the market was euphoric.
However, I've been fretting over the impending tax bill which is going to be enormous. That's when I started looking into direct indexing.
As I understand, direct indexing has a short-term benefit for those with very large taxable portfolios, such as from windfalls. I would probably only do this for this year, because I have so much capital gains this year and I want to defer some of that to the first half of 2027 when I am still in a lower tax state (and overall still making much less than I would be starting in 2028). As I said before, my long term goal is liquidation of the majority to fund a house purchase in 1-3 yrs.
My plan would be to keep approximately 40 percent of my cash for direct indexing and 60 percent as cash/SGOV (which would be reserved for tax payment and possible re-entry of AMD in case of crash).
With "diy" direct indexing, my concerns would be imperfect tracking of the index and not creating enough dispersion to meaningfully tax harvest.
My current plan would be to choose a few sectors/indices to track, generally putting less weight on tech and more on defensive/commodity/cyclical because I still hold 20 percent AMD and my overall thesis/goal is now defensive ie. being vigilant about possible market downturns.
I would probably buy 2-3 individual representative stocks in the sector (to create dispersion) along with the index (possibly also including foreign assets and some materials like gold, platinum). Sell when there's more than 8 percent loss to capture loss, and rebuy similar. Keep the winners until I need the funds for house purchase in 1-3 years. Does this sound reasonable?
Thank you for your advice in advance!
My situation is that I have large cap gains from selling AMD (cap gains alone of 450K+ in 2026) with a mix of long term and short term sales. I have sold a bit too much, because 1) I am moving to a higher tax state with much higher W2 income in the latter half of 2027, 2) I am hoping to buy a house within the next 2-3 years and 3) did feel that the market was running hot/euphoric.
I feel overwhelmed by the impending tax bill and was reading up on direct indexing offered by Fidelity or PGIM. This made me think about doing a DIY version by buying a wide range of indices and stocks in different sectors as well as materials, crypto etc. Every month, I would sell the losers and repurchase a similar ETF/stock, keeping the winners until long term when I would sell to fund my house purchase.
The goal is to cancel out short term gains as much as possible this year while diversifying to minimize my risk. I have another window in the first half of 2027 to realize my gains in a relatively low tax environment, so some tax deferment this year could be beneficial.
1.Does this sound like a reasonable plan and theoretically beneficial for me in my situation? When I run basic math, I see this strategy winning against putting all of my cash into treasuries/SGOV in choppy/neutral and bull markets. In a bear market, SGOV would win short-term but diversified TLH investing partially offsets losses through tax loss harvest while maintaining market participation with possible recovery in the future.
2. If so, the big question is exactly what mix to buy? A balance of ETFs in various sectors (semis, healthcare, finance, insurance, consumer defensive, communications, consumer cyclical, industrial, energy etc) would be important obviously. And I plan on throwing in a good number of representative stocks like WMT and Autozone which would be resilient in case of sector rotation or a bear market (and in an attempt to create enough dispersion which is a potential pitfall for DIYing). Anything else I should consider like materials (e.g. gold, plat), foreign markets, storage REITs etc?
The proportions would be something that I would need to figure out too. For example, how much to put into something like SOXX where I already have good exposure with 25 percent of my portfolio remaining in AMD?
Someone even suggested setting aside some % for lottery ticket trades like short term OTM options. Not sure if I am willing to go that far...but it reflects my current position where I coudl be slightly more risk-taking at least until end of this year.
3) How much of my cash (~750k) should I keep in SGOV/cash? Obviously, I should have enough to pay off my taxes (I am planning to utilize the safe harbor rule to avoid penalties) next year, in addition to holding some reserve for re-entry of AMD if it experiences a significant dip. So I am thinking around 250K.
Thank you!
My situation is that I have large cap gains from selling AMD (cap gains alone of 450K+ in 2026) with a mix of long term and short term sales. I have sold a bit too much, because 1) I am moving to a higher tax state with much higher W2 income in the latter half of 2027, 2) I am hoping to buy a house within the next 2-3 years and 3) did feel that the market was running hot/euphoric.
I feel overwhelmed by the impending tax bill and was reading up on direct indexing offered by Fidelity or PGIM. This made me think about doing a DIY version by buying a wide range of indices and stocks in different sectors as well as materials, crypto etc. Every month, I would sell the losers and repurchase a similar ETF/stock, keeping the winners until long term when I would sell to fund my house purchase.
The goal is to cancel out short term gains as much as possible this year while diversifying to minimize my risk. I have another window in the first half of 2027 to realize my gains in a relatively low tax environment, so some tax deferment this year could be beneficial.
1.Does this sound like a reasonable plan and theoretically beneficial for me in my situation? When I run basic math, I see this strategy winning against putting all of my cash into treasuries/SGOV in choppy/neutral and bull markets. In a bear market, SGOV would win short-term but diversified TLH investing partially offsets losses through tax loss harvest while maintaining market participation with possible recovery in the future.
2. If so, the big question is exactly what mix to buy? A balance of ETFs in various sectors (semis, healthcare, finance, insurance, consumer defensive, communications, consumer cyclical, industrial, energy etc) would be important obviously. And I plan on throwing in a good number of representative stocks like WMT and Autozone which would be resilient in case of sector rotation or a bear market (and in an attempt to create enough dispersion which is a potential pitfall for DIYing). Anything else I should consider like materials (e.g. gold, plat), foreign markets, storage REITs etc?
The proportions would be something that I would need to figure out too. For example, how much to put into something like SOXX where I already have good exposure with 25 percent of my portfolio remaining in AMD?
Someone even suggested setting aside some % for lottery ticket trades like short term OTM options. Not sure if I am willing to go that far...but it reflects my current position where I coudl be slightly more risk-taking at least until end of this year.
3) How much of my cash (~750k) should I keep in SGOV/cash? Obviously, I should have enough to pay off my taxes (I am planning to utilize the safe harbor rule to avoid penalties) next year, in addition to holding some reserve for re-entry of AMD if it experiences a significant dip. So I am thinking around 250K.
Thank you!
My situation is that I have large cap gains from selling AMD (cap gains alone of 450K+ in 2026) with a mix of long term and short term sales. I have sold a bit too much, because 1) I am moving to a higher tax state with much higher W2 income in the latter half of 2027, 2) I am hoping to buy a house within the next 2-3 years and 3) did feel that the market was running hot/euphoric.
I feel overwhelmed by the impending tax bill and was reading up on direct indexing offered by Fidelity or PGIM. This made me think about doing a DIY version by buying a wide range of indices and stocks in different sectors as well as materials, crypto etc. Every month, I would sell the losers and repurchase a similar ETF/stock, keeping the winners until long term when I would sell to fund my house purchase.
The goal is to cancel out short term gains as much as possible this year while diversifying to minimize my risk. I have another window in the first half of 2027 to realize my gains in a relatively low tax environment, so some tax deferment this year could be beneficial.
1.Does this sound like a reasonable plan and theoretically beneficial for me in my situation? When I run basic math, I see this strategy winning against putting all of my cash into treasuries/SGOV in choppy/neutral and bull markets. In a bear market, SGOV would win short-term but diversified TLH investing partially offsets losses through tax loss harvest while maintaining market participation with possible recovery in the future.
2. If so, the big question is exactly what mix to buy? A balance of ETFs in various sectors (semis, healthcare, finance, insurance, consumer defensive, communications, consumer cyclical, industrial, energy etc) would be important obviously. And I plan on throwing in a good number of representative stocks like WMT and Autozone which would be resilient in case of sector rotation or a bear market (and in an attempt to create enough dispersion which is a potential pitfall for DIYing). Anything else I should consider like materials (e.g. gold, plat), foreign markets, storage REITs etc?
The proportions would be something that I would need to figure out too. For example, how much to put into something like SOXX where I already have good exposure with 25 percent of my portfolio remaining in AMD?
Someone even suggested setting aside some % for lottery ticket trades like short term OTM options. Not sure if I am willing to go that far...but it reflects my current position where I coudl be slightly more risk-taking at least until end of this year.
3) How much of my cash (~750k) should I keep in SGOV/cash? Obviously, I should have enough to pay off my taxes (I am planning to utilize the safe harbor rule to avoid penalties) next year, in addition to holding some reserve for re-entry of AMD if it experiences a significant dip. So I am thinking around 250K.
Thank you!
My situation is that I have large cap gains from selling AMD (cap gains alone of 450K+ in 2026) with a mix of long term and short term sales. I have sold a bit too much, because 1) I am moving to a higher tax state with much higher W2 income in the latter half of 2027, 2) I am hoping to buy a house within the next 2-3 years and 3) did feel that the market was running hot/euphoric.
I feel overwhelmed by the impending tax bill and was reading up on direct indexing offered by firms like PGIM and Natixis. This made me think about doing a DIY version of this by buying a wide range of indices in different sectors (in addition to a few individual stocks of interest) as well as materials, crypto etc. Every month, I would sell the losers and repurchase a similar ETF/stock (to avoid wash rule), keeping the winners until long term when I would sell to fund my house purchase.
The goal is to cancel out short term gains as much as possible this year while diversifying to minimize my risk. I have another window in the first half of 2027 to realize my gains in a relatively low tax environment, so some tax deferment this year could be beneficial.
1.Does this sound like a reasonable plan and theoretically beneficial for me in my situation? When I run rudimentary math, I see this strategy winning against putting all of my cash into treasuries/SGOV in choppy/neutral and bull markets. In a bear market, SGOV would win short-term but diversified TLH investing partially offsets losses through tax loss harvest while maintaining market participation with possible recovery in the future.
2. If so, the big question is exactly what mix to buy? A balance of ETFs in various sectors (semis, healthcare, finance, insurance, consumer defensive, communications, consumer cyclical, industrial, energy etc) would be important obviously. And I plan on throwing in a few individual stocks like WMT and car repair stocks which would be resilient in case of sector rotation or a bear market. Anything else I should consider like materials (e.g. gold, plat), foreign markets, storage REITs etc?
The proportions would be something that I would need to figure out too. (Maybe I can just go by the sector's relative sizes in the sp500). For example, how much to put into something like SOXX where I already have good exposure with 25 percent of my portfolio remaining in AMD?
Overall, I would need to have some confidence in the mix to hold up even in case of a market downturn, so that I feel comfortable putting in a lot of cash in accordance with this strategy.
3) How much of my cash (~750k) should I keep in SGOV/cash? Obviously, I should have enough to pay off my taxes (I am planning to utilize the safe harbor rule to avoid penalties) next year, in addition to holding some reserve for re-entry of AMD if it experiences a significant dip. So I am thinking around 250K.
Thank you!
My situation is that I have large cap gains from selling AMD (cap gains alone of 450K+ in 2026) with a mix of long term and short term sales. I have sold a bit too much, because 1) I am moving to a higher tax state with much higher income as attending next year 2) I am hoping to buy a house within the next 2-3 years and 3) did feel that the market was running hot/euphoric.
I feel overwhelmed by the impending tax bill and was reading up on direct indexing offered by firms like PGIM and Natixis. This made me think about doing a DIY version of this by buying a wide range of indices in different sectors (in addition to a few individual stocks of interest) as well as materials, crypto etc. Every month, I would sell the losers and repurchase a similar ETF/stock (to avoid wash rule), keeping the winners until long term when I would sell to fund my house purchase.
The goal is to cancel out short term gains as much as possible this year while diversifying to minimize my risk. I have another window in the first half of 2027 to realize my gains in a relatively low tax environment, so some tax deferment this year could be beneficial.
1.Does this sound like a reasonable plan and theoretically beneficial for me in my situation? When I run rudimentary math, I see this strategy winning against putting all of my cash into treasuries/SGOV in choppy/neutral and bull markets. In a bear market, SGOV would win short-term but diversified TLH investing partially offsets losses through tax loss harvest while maintaining market participation with possible recovery in the future.
The proportions would be something that I would need to figure out too. (Maybe I can just go by the sector's relative sizes in the sp500). For example, how much to put into something like SOXX where I already have good exposure with 25 percent of my portfolio remaining in AMD?
Overall, I would need to have some confidence in the mix to hold up even in case of a market downturn, so that I feel comfortable putting in a lot of cash in accordance with this strategy.
Thank you!
My situation is that I have large cap gains from selling AMD (cap gains alone of 450K+ in 2026) with a mix of long term and short term sales. I have sold a bit too much, because 1) I am moving to a higher tax state with much higher W2 income in the latter half of 2027, 2) I am hoping to buy a house within the next 2-3 years and 3) did feel that the market was running hot/euphoric.
I feel overwhelmed by the impending tax bill and was reading up on direct indexing offered by firms like PGIM and Natixis. This made me think about doing a DIY version of this by buying a wide range of indices in different sectors (in addition to a few individual stocks of interest) as well as materials, crypto etc. Every month, I would sell the losers and repurchase a similar ETF/stock (to avoid wash rule), keeping the winners until long term when I would sell to fund my house purchase.
The goal is to cancel out short term gains as much as possible this year while diversifying to minimize my risk. I have another window in the first half of 2027 to realize my gains in a relatively low tax environment, so some tax deferment this year could be beneficial.
1.Does this sound like a reasonable plan and theoretically beneficial for me in my situation? When I run rudimentary math, I see this strategy winning against putting all of my cash into treasuries/SGOV in choppy/neutral and bull markets. In a bear market, SGOV would win short-term but diversified TLH investing partially offsets losses through tax loss harvest while maintaining market participation with possible recovery in the future.
The proportions would be something that I would need to figure out too. (Maybe I can just go by the sector's relative sizes in the sp500). For example, how much to put into something like SOXX where I already have good exposure with 25 percent of my portfolio remaining in AMD?
Overall, I would need to have some confidence in the mix to hold up even in case of a market downturn, so that I feel comfortable putting in a lot of cash in accordance with this strategy.
Thank you!
I have recently realized a lot of capital gains (mix of short term and long term of AMD), and debating what would be best to park this cash beyond RH cash sweep (3.35 percent). I am stressing about the inevitable huge tax bill next year, but that's another post.
I have been experimenting with SGOV which someone recommended because it has slightly higher yield and no state taxes? But, it was bit confusing since my position has barely grown (literally +14 cents for a 1000 dollar position started on Friday night).
Any other suggestions?
I have recently realized a lot of capital gains (mix of short term and long term of AMD), and debating what would be best to park this cash beyond RH cash sweep (3.35 percent). I am stressing about the inevitable huge tax bill next year, but that's another post.
I have been experimenting with SGOV which someone recommended because it has slightly higher yield and no state taxes? But, it was bit confusing since my position has barely grown (literally +14 cents for a 1000 dollar position started on Friday night).
Any other suggestions?
I have recently realized a lot of capital gains (mix of short term and long term), and debating what would be best to park this cash beyond RH cash sweep (3.35 percent). I am stressing about the inevitable huge tax bill next year, but that's another post.
I have been experimenting with SGOV which someone recommended because it has slightly higher yield and no state taxes? But, it was bit confusing since my position has barely grown (literally +14 cents for a 1000 dollar position started on Friday night).
Any other suggestions?
With the stock run-up, I recently sold a lot of shares for 400K+ in mostly long term gains. I am apprehensive of the tax bill that I will have to pay next April but also realized that I could be facing a large underpayment penalty from the IRS if I don't take action. I've already worked with the AI chatbots to figure out my strategy for withholding enough from my W2 paycheck to avoid the penalty - but, honestly, I don't trust AI fully for obvious reasons.
I calculated how much I would have to withhold this year based on last year. From form 1040 (federal) and 1040N (state), I went to line 24 for the former and found 21551 USD as last year's federal income tax. Did similar for state tax and it was 8114 USD.
Now, I am going to multiply these numbers by 110 percent and make sure I withhold an equal or higher amount for state and federal respectively this year from my W2 salary. This would mean that I would have to essentially withhold the full last 4 months of salary because my income is pretty modest as a medical resident (approx 75K/yr).
Am I doing this right? Anything else I should consider?
Is it permissible to significantly back-load the withholding like this? I figure that this would be more financially advantageous to me if allowed (so that I can collect more interest during the year).
Does the IRS automatically check that I've withheld sufficiently, or do I have to notify them of this?
Thank you for your guidance
With the stock run-up, I recently sold a lot of shares for 400K+ in mostly long term gains. I am apprehensive of the tax bill that I will have to pay next April but also realized that I could be facing a large underpayment penalty from the IRS if I don't take action. I've already worked with the AI chatbots to figure out my strategy for withholding enough from my W2 paycheck to avoid the penalty - but, honestly, I don't trust AI fully for obvious reasons.
I calculated how much I would have to withhold this year based on last year. From form 1040 (federal) and 1040N (state), I went to line 24 for the former and found 21551 USD as last year's federal income tax. Did similar for state tax and it was 8114 USD.
Now, I am going to multiply these numbers by 110 percent and make sure I withhold an equal or higher amount for state and federal respectively this year from my W2 salary. This would mean that I would have to essentially withhold the full last 4 months of salary because my income is pretty modest as a medical resident (approx 75K/yr).
Am I doing this right? Anything else I should consider?
Is it permissible to significantly back-load the withholding like this? I figure that this would be more financially advantageous to me if allowed (so that I can collect more interest during the year).
Does the IRS automatically check that I've withheld sufficiently, or do I have to notify them of this?
Thank you for your guidance
With the stock run-up, I recently sold a lot of shares for 400K+ in mostly long term gains. I am apprehensive of the tax bill that I will have to pay next April but also realized that I could be facing a large underpayment penalty from the IRS if I don't take action. I've already worked with the AI chatbots to figure out my strategy for withholding enough from my W2 paycheck to avoid the penalty - but, honestly, I don't trust AI fully for obvious reasons.
I calculated how much I would have to withhold this year based on last year. From form 1040 (federal) and 1040N (state), I went to line 24 for the former and found 21551 USD as last year's federal income tax. Did similar for state tax and it was 8114 USD.
Now, I am going to multiply these numbers by 110 percent and make sure I withhold an equal or higher amount for state and federal respectively this year from my W2 salary. This would mean that I would have to essentially withhold the full last 4 months of salary because my income is pretty modest as a medical resident (approx 75K/yr).
Am I doing this right? Anything else I should consider?
Is it permissible to significantly back-load the withholding like this? I figure that this would be more financially advantageous to me if allowed (so that I can collect more interest during the year).
Does the IRS automatically check that I've withheld sufficiently, or do I have to notify them of this?
Thank you for your guidance
With the stock run-up, I recently sold a lot of shares for 400K+ in mostly long term gains. I am apprehensive of the tax bill that I will have to pay next April but also realized that I could be facing a large underpayment penalty from the IRS if I don't take action. I've already worked with the AI chatbots to figure out my strategy for withholding enough from my W2 paycheck to avoid the penalty - but, honestly, I don't trust AI fully for obvious reasons.
I calculated how much I would have to withhold this year based on last year. From form 1040 (federal) and 1040N (state), I went to line 24 for the former and found 21551 USD as last year's federal income tax. Did similar for state tax and it was 8114 USD.
Now, I am going to multiply these numbers by 110 percent and make sure I withhold an equal or higher amount for state and federal respectively this year from my W2 salary. This would mean that I would have to essentially withhold the full last 4 months of salary because my income is pretty modest as a medical resident (approx 75K/yr).
Am I doing this right? Anything else I should consider?
Is it permissible to significantly back-load the withholding like this? I figure that this would be more financially advantageous to me if allowed (so that I can collect more interest during the year).
Does the IRS automatically check that I've withheld sufficiently, or do I have to notify them of this?
Thank you for your guidance