How to safely transition from Managed Brokerage to a three-fund portfolio?
New investor here, please be gentle.
Last summer, I opened a Managed Brokerage account and some CDs with Fidelity. I wasn't 100% sure of what I was doing at the time and likely made some minor mistakes. Now that I have a better idea of how I'd like to structure my portfolio, I'm trying to untangle things without creating unnecessary tax penalties for myself.
I'm looking to move away from the Managed Brokerage account and simplify to a self-managed three-fund portfolio. I just can't figure out the timing to make sure my current Managed Brokerage positions liquidate as long-term vs short-term gains.
Originally I thought I'd have to wait until the one-year mark of opening the Managed Brokerage account, but then I realized that the managed account is constantly acquiring new shares. My understanding is that this "resets the clock" when it comes to taxable short-term gains.
Also, I inadvertently made things a little messier by stopping my CD ladder and having a matured CD roll into the managed brokerage account earlier this year. The account manager immediately reinvested that cash into new positions.
Is there a way to suspend trading and get clarity on timing for a tax-sensitive transition from the Managed Brokerage to my own three-fund portfolio? I realize this may have to be done in stages as positions change from short- to long-term gains; I just want to avoid screwing up on the tax front.