How to Unwind a Complicated Investment Portfolio

[@karenscookingkorner]

I transferred all of my IRA from my advisor to managing it myself. BEST decision ever! It was scary at first but now I enjoy researching what I want to invest in.

[@EatLeadPal]

I'm in the process of doing that right now. I manage my own 401k and made 10% more than my Vanguard advisors did in 2023.

[@karenscookingkorner]

@@EatLeadPal thats awesome!!!!!

[@kw7292]

Rob - good stuff as always. You are the best free advisor!!!!

[@oriewall]

I converted away from a 1% anum several years ago. They were buying individual stocks rolling there own MF. Luckily this was all in an IRA so I had them sell and send cash. The lesson I learned was give them time to clear all positions, I jumped the gun and moved everything before they were ready. Took about a month before I got it all moved. Even this was relatively painless, hurry up and wait!

[@PurvisTwiggs]

I’m 60 and want to retire in 6 months. I have a $170K savings plus a 401k depleted to $200K of money that I’m not sure what I can do with at this point. My retirement plans seem to be out the window. Is it a good idea to get professional help?

[@irenatrulove]

With everything going on, consider financial planning, … that is okay. You can get your money to work for you. but I would say delay retirement a little.

[@PurvisTwiggs]

I have heard how they can help you make the best decisions and to be honest I don’t want to lose anymore money or I will have to work till I die.

[@irenatrulove]

It’s a good idea to look for a fiduciary who has a legal obligation to work in your best interest and can’t recommend products or services just because they’ll receive a financial kickback for doing so. I and my spouse work with a retirement planner, Loren Lena Walker we met in NY, learnt about Loren from Danielle Dimartino Booth in an interview.

[@irenatrulove]

Under guidance, we split our investments, traditional IRA and the individual brokerage account where she copies her moves on our account from her master. We have been up by 74% precisely in the past year She rebalanced again when the year began, we still hold cash and are cautious with how much we let into the market at this point.

[@PurvisTwiggs]

Please Can I get the contact info of this Loren you work with?

[@ianwhitehead7247]

Exactly what I did. I took half from a 2% advisor. Then two years later I took the other half. Cheers

[@KeithRollin]

Regarding avoiding capital gains in a taxable account: I currently have 30% of my portfolio in AAPL. (I bought 150 shares in 1995, so almost all my current AAPL value is unrealized gains.) I'm working on selling this down, but am spreading the process out over many years. The idea here is to keep under the (2022) $550K limit for taxes on LTCG's. If you stay under that, you pay 15%; if you go over that, you pay 20%.

[@jackcapone4375]

Rob I had a the exact situation. I took over from my advisor and the market was down. Inside of two traditional IRAs and two Roth IRA‘s. I moved everything into the three fund portfolio I was working towards. 15:48 15:48 account was very large, but the market was down so I was able to realize a ton of losses and then gains not to exceed those losses so that I would have no taxes. I then moved all that cash into my three fund model. With all that said, I still have a lot left mostly in stocks with some still and some mutual funds I want to get out of. Right now I’m doing a ton of Roth conversions so I’m still managing that issue and cannot Realize any more gains at this time without an insane tax bill. So I’m doing the best I can will see what the future allows. I keep watching for any losses or any situation that might allow me to convert more of what I have in my taxable to the model I want to be.

[@NarenMalayath]

Hi Rob, For dealing with single stock portfolio concentration, there is another option. In kind transfer to exchange funds. Down side is relatively large minimums and fees.

[@johnpawlak7484]

Thank you, Mr. Berger for your continued support.

[@ltmsimply]

What an amazing video. You are exposing them financial industry 😮 and their 60 holding portfolios… Great information. Well done 👍!!

[@johnnyfive1412]

The point about options is probably about writing ITM covered calls. It wouldnt reduce taxes, but would generate some income with which to pay the taxes. The income from the calls would also be taxed, so not sure this would help much in the long run.

[@sandyparis7235]

only thing with taking just some out of ira acct from managed to self directed, is then the brokerage won't talk to you because you have a private client (but only on some) but JPM blocks you from working with the brokerage advice only lets you make your own decisions. Then your PC won't talk to you as you have some in self directed

[@joelcorley3478]

Vanguard's patent expired May 16th 2023. The problem though is that a lot of fund providers already have both funds and ETFs that are separate. They'd need to combine them to take advantage of Vanguard's patented process.

[@Steven-vi5nb]

Wow! This spoke right to me! My taxable portfolio is handcuffed in gains with a concentration in tech, 35% of portfolio. I offset this with SCHD, 30% of portfolio. Should I further offset tech exposure and large cap value etf with small cap value etf? Thanks Rob!

[@ltmsimply]

Why. I am in a same boat and I will not sell tech unless I need the cash . In 20 years tech is the future…

[@Steven-vi5nb]

​@@ltmsimply If you've got a ton in tech, pledge the holdings and borrow against it. As for me, I'm near retirement and don't need more tech exposure because it doesn't change my lifestyle.

[@pfreeburn]

Excellent Rob!

[@selyoks]

Thanks for this

[@denbarproperties800]

We are moving away from our financial advisor who has us in more than a 100 positions in our taxable accounts. I would like to know how to identify which of each positions has a gain or loss and weather it is a less than a year gain (short-term) or long term gain. The assets are in a Schwab account, so it would be helpful to know how to do this on the Schwab platform.

[@timc2493]

What about putting it in FBALX OR WELLINGTON. Having cash in a money market for 2-3 years of expenses. Good years take from fund bad years take from money market. Replenish when MM is below baseline.

[@benpitts585]

Rob, appreciate your videos. I working toward a 3/5 stock portfolio at least for my IRA. I may have specific question late. Lots of videos to listen to first. By the way BRK direct owns 65 companies, not sure how many stock positions they hold. I have significant (for my portfolio) exposure to it. I look at it like an index fund like SPY, QQQ etc. It looks to me like an actively managed fund with no fees. Who be interesting in hearing you thoughts on BRK in that line of thought.

[@hero108zero3]

I prefer etfs as they are portable across brokers. For my small monthly contribution to taxable, I plan to go with funds at Vanguard that I will convert to etfs once a year. That is because I don't want to worry about spreads and market/limit orders buying etfs for frequent small transactions. Also if there is a day like 1987 when stocks are down rapidly I want the flexibility to sell a part of my investments during retirement

[@dmsoundcollective6746]

Hey Rob I don't why people should be so worried to take a week or two to transfer over they're complicated investment. They should close their eyes for a moment and know that the very thing they're doing outweighs any amount of loss they could have in two weeks. It just creates more worry. the whole idea behind the three fund portfolio is to reduce that worry and live your life to the fullest while your fund is doing all the work ;) zen imvesting....oooohhhhmmm...lol

[@michaelkeaton32]

What if they're in individual stocks? I want to sell them so them go to the three fund portfolio.

[@molleespillett3181]

Apart from the bank where can I invest a good amount of money, I have a strong feeling they are ripping me off.

[@harlibassham8187]

Hey Mate, the same here I had to pull 700k from my bank last week to my real estate, looking out for better options

[@aarushisanah5811]

Is this Greed? I make 6k weekly from a stock Pro, I know this is a good ROI but I still want more, lol its never enough I guess.

[@molleespillett3181]

It’s not Greed if it’s a calculated risk, the more money you make the more doors you unlock.

[@harlibassham8187]

Hey Aarushi, any chance you can share your trader with me ?

[@aarushisanah5811]

Yeah. Jennifer Lilibeth Tibbs look up her name

[@renzenker2526]

I just went through this. I only had this stupid guy for 4 months, and he put me in thirty one different positions. I told them to sell it all and give it back to me. Done.

[@MikeEldridgeCRPC]

what were the positions? individual stocks?

[@davidw1732]

What about those of us who have a portion of our 7 figure AUM account in a tax sensitive SMA with one of the big firms? There are 100 or 200 individual stocks plus all the ETF's they have me in. What can we do to unwind this? This is a taxable account.

[@davidtvedte1337]

Earlier this year I decided to adjust my portfolio with many accounts. I needed to make my taxable account more tax efficient. I had determined that the many stock funds I had in that account paid more in capital gains distributions even though they were all index funds. I determined that a Total Stock Market index would be better. As I was doing this there were also tax loss harvesting going on. Except for being careful to not create a washed sale, it was just a matter of selling one set of funds and buying the replacement. I did not do it all at once and as the market was rising this did reduce the amount of tax losses I could have harvested. I was selling a set of funds that more or less was similar to the total market. Doing this at Fidelity instead of selling one day and buying ones the funds cleared I could do it as an Exchange. This sold shares in one fund and then used the proceeds to buy the other fund all in one trade on the same day. Was never out of the market that way.

[@tomhudder8055]

What about a scenario where you're in some big losses with some high fliers and believe that you are better off holding those with the hopes of having equally big turnarounds as opposed to selling them, taking the losses, and then funneling those funds into more conservative (smarter) ETFS with sloe (but steady) returns likely? (IRA account)

[@hm51008]

If possible, ‘transfer in kind’.

[@Timothythebrewer]

How do you unwind a portfolio that is 10-15% under water, invested in high quality positions, but out of market favor? Wait it out?

[@martinguldnerAutisticSwanGuru]

For me I inherited a traditional IRA and taxable brokerage accounts with 2 different brokerage firms. Self directed by my brother and I had no choice in the individual stocks I inherited. I sold 4 loser stocks for a small capital loss. Trimmed the top 3 stocks that were 24% of the entire portfolio across all accounts. In taxable accounts I own 44 individual stocks, 8 ETFs (some sector, some covered call ETFs, Franklin Income fund (been around since 1947) 17 ETFs in my Roth IRA some sector, some covered call ETFs.

[@zumapuma38]

You sound like the situation I find myself in. Inherited IRAs and taxable accounts from four different brokerages. Finally got it all moved to one, but I have 200 individual stock positions and so far have been completely unimpressed with any advisors advice. I listen to Rob and wonder if I should be converting to a 3-4 ETF portfolio. I too sold some of the small stuff off and bought a house with cash. I figure that just changed my asset allocation in my net worth. I'm also trimming some of the stocks that I'm overloaded in and creating a cash fund in high yield savings. Looking to do more in fixed income as I am retired and disabled, but sometimes it is very hard to get good sound knowledge and have the courage to go forward into action.

[@MikeEldridgeCRPC]

@@zumapuma38 ETF's sure would make things simpler.

[@WKre123x4]

@@zumapuma38maybe look for a fee only Financial Planner that is a fiduciary? They should be able to help you unwind the complexity.

[@Mike-123]

Dying fixes a lot of problems.

[@briandonahue2736]

A recently inherited low six figure IRA managed by a large investment firm had 300 line items. Kitchen sink.

[@analyticsx3]

I thought the reason an advisor spreads across a lot of funds is due to diversification requirements they need to follow? This was the primary reason the Nasdaq had to adjust weights was over institutional investors running into diversification problems.

[@MikeEldridgeCRPC]

There is no federal or state regulation. if that is what you are referring to. Most likely the protocol is passed down from the company to make things simpler, from the investment advisors point of view, and to make sure they don't get sued. There are some rules from Investment advisors that make sense. Like no more than 5% in one stock position. But a fund would most likely have 30+ stocks, so that would take care of that issue with 1-2 funds.

[@analyticsx3]

@@MikeEldridgeCRPC Thanks for the clarification that makes sense.

[@well7885]

Nice watch

[@davidw1732]

How many different funds do you hold?

[@kw7292]

3 or 4, $VOO (or $VTI), $BND, $VXUS, add Tips or whatever you want, but the 3 above gets it done. Very diversified. Start with a 60 stock / 40 bond and compare in portfolio visualizer to suit your risk tolerance. Rebalance yearly (Rob does quarterly).

[@davidw1732]

@@kw7292 Thanks but I was curious about how many different positions Rob holds

[@firepilot17]

I’m helping my 72 year old aunt get away from Wells Fargo, paying 1.25%, invested in a ‘custom choice program’ she has no idea about, only has about $80,000, and is taking withdrawals to supplement her SS, about $500/month. I’m moving her to Vanguard. What funds would you put her in?

[@pnkrckmom]

I'm not Rob, obviously. What about the Lifestrategy Conservative fund? Fixed allocation. No rebalancing. No trying to decide which fund to take the money out of.

[@firepilot17]

Yep. That’s one fund I’m considering. Thanks for replying!

[@noreenn6976]

​@@firepilot17agree with the other reply. I'm happy with my life strategy growth fund, not retired yet.

[@firepilot17]

Agree. That is a great fund. I'm thinking of just a few funds like that should do the trick.

[@kw7292]

$VOO or $VTI and $BND, $VXUS for international exposure and Tips for some of the bond percentage. Use portfolio visualizer and compare to a 60% stock 40% bond portfolio and adjust to your risk tolerance.

[@phd_angel4192]

Good principles but the 4 ETF proposal is lazy. I have 20 ETFs and 40 stocks and couldn’t be happier. I fired my advisor, and optimized my portfolio. It easily beats the 4 ETF solution in growth and dividend.

[@kw7292]

Show us on portfolio visualizer. Proof is in the pudding.

[@phd_angel4192]

@@kw7292 Unfortunately you didn’t use the magic words. But you can run multiple scenarios to find the truth.

[@prestonphelps1649]

Rob. finish 1 sentence before beginning another