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Author: KrisAdAstra One star, 50 posts Mission Olympia 2 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121572  
Subject: Portfolio rebalancing and tax consequences Date: 7/7/2011 12:22 AM
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Dear Fools-

I'm a new investor who has benefited greatly from Stock Advisor advice. However, I now find myself in the position of needing to sell some stock to rebalance my portfolio due to some great gains that have now become too risky for my taste. I simply can't take the risk that 50% of the value of my portfolio is in a single stock (thank you NFLX). The problem is that if I sell a significant portion of this stock it will bump me out of the 15% tax bracket and I'll have to pay capital gains taxes.

Is there any way I can redistribute this risk, perhaps into new accounts in another family members name? Can you create IRAs for infants (crazy question)? I don't want to give away the money to charity as I'd like to allow it to grow, just in a more diversified way.

Any ideas?

~Kris
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