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  • Year end tax question

    I am selling a house and will be able to direct about 50K of the proceeds to start a brokerage account.  Per my desired AA I will be buying VTSAX.  My question is I will be getting these funds very close to the end of the year.  Is there any advantage to rushing to get this money into my vanguard account prior to the year end?  I have no desire to time the market and want to just shuttle the money in when I get it but would there be some benefit to waiting a week for tax or other purpose that I have not thought of?    Other then 1 less tax form to fill out for 2018.

    Thanks for the help!

     

    Also I imagine as soon as I do this the market will tank.  So be prepared to get some cheap stock!

  • #2
    you get the q4 dividend if you own it at the appropriate date, if that matters to you. that is taxable in 2018

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    • #3


      Also I imagine as soon as I do this the market will tank.  So be prepared to get some cheap stock!
      Click to expand...


      I LOL at this. Will be on the lookout.

      I think your question is a good one - so many tax-timing issues at the eoy, why not this? However, I can think of no reason it will benefit you to invest before the end of the year, other than that the market is up, on average, 7 out of every 10 days. In the short term, however, even that statistic is irrelevant.
      Financial planning, investment management and CPA services for medical and high-income professionals | 270-247-6087

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      • #4




        you get the q4 dividend if you own it at the appropriate date, if that matters to you. that is taxable in 2018
        Click to expand...


        I am not sure what the ex-dividend date is for VTSAX this month but my understanding is that getting in right before it does not help you very much and may actually hurt slightly due to taxes.  I realize this is a very small amount we are talking about.  Anyways if I were to get funds in this year it would likely be after anyways because I will not have them until at least the 24th.

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        • #5
          Capital gains distributions can theoretically affect you but with VTSAX I think that’s a relative non-issue.

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