[USER]

I’m finally ready to fire my advisor. I have 230K with him in a taxable brokerage account.

He invests in individual stocks.

I invest in ETFs (and get better results).

How do I make the switch from individual stocks to ETFs?

I don’t want to incur a bunch of taxes.

I have short and long term in the account, so it’s a bit messy.

What strategy should I use to make the switch?

Thanks for any tips.

[Vinh]

How long have you had the advisor work on your account? Has it been at least a year yet?

[Pete]

Transfer all assets in-kind to another brokerage. Next, offset gains with losses.

Should be able to see this by looking at your cost basis.

Then buy index funds and let it ride the easy way.

[Steve]

Well, at least individual stocks will transfer in-kind… they can’t all suck.

Match some winners with some losers to minimize the tax hit, but remember the long term gains are taxed lower.

[Ryan]

Yes no way to avoid taxes when you sell off, only can mitigate the amount by selling shares that qualify for long term gains.

Unless someone knows a legal loophole

[Carl]

Once you own the stock you can’t exchange it for something else, you would need to sell and then rebuy something else this will cause a gain or loss.

So, like Steve says sell winners with losers, or take the tax hit if it’s long term gains depending on your income it might not be too bad.

To fire your advisor get an account somewhere else, advisory or not and then transfer it over I would think it’ll all be able to go in kind

[Tristan]

Do you have any losses you could harvest? Otherwise start with the long term as much of the taxes you can handle and then repeat again the next year

[Dave]

Show us your positions and prices
Some of the stocks are worth owning

[Author]

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