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I am in a slew of stocks and funds that my previous advisor put me in without my tacit understanding of the holdings (a "Wise" decision, I know), but I am much more educated now and clearly "Foolish" about what I want to do now. The problem is taxes:

Nearly everything I own is at a loss, and while I would like to move some of my holdings across to other vehicles, like spiders/index funds, and so on, I am concerned about the net loss I will realize on the sales as I move things. I will definitely have a net loss greater than $3K for the year (potentially 10s of thousands in fact) because I do not plan to actively trade after I reallocate my holdings.

The question: how important is it to sell now and get out of some of these holdings versus "sitting tight" and waiting for some of these holdings to get out of the red and into more positive territory so I have a better balance between gain and loss?

In other words, should the tax implications be the driver here or should I simply move things around and lose some "loss" leverage on future gains?

The thing that's killing me is that I am invested in "load" funds, and class B ones at that with those 12b-1 fees. I am really angry about that now that I've gone through "Fool School".


Gene Sohn
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