[baggachipz]

Yes. Went from 100% S&P500 fund into a gold ETF and a high-dividend fund (SCHD). Still a good portion in S&P but gotta hedge some.

[qwerpy]

How do you handle the capital gains taxes? I’d love to be able to rebalance the massive S&P 500 portion of my portfolio into other things but it would trigger huge federal and state taxes. Was hoping to hold on to these until retirement at which point I’d slowly be selling it for living expenses and the income taxes would be much smaller.

[nilkn]

I'm very curious about this as well. This is the main thing that has held me back from a meaningful rebalancing. Eating a huge tax bill to avoid a theoretical future loss of unknown size and duration while also losing out on potential gains if that loss ends up not materializing is a hard pill to swallow. I suppose this is probably why most long-term investment advice suggests not trying to time the market unless you have a very short time horizon. (Note: for me, I'm referring to funds in taxable brokerage accounts.)

[dehrmann]

You pay taxes with the proceeds from the sale? You sell all the losers in your portfolio to offset what gain you can?

[chasd00]

this is the spot i'm in too, i can move my 401k and IRAs around fine but ye'old brokerage account is a different story. Unless my losses are greater than the capital gains i'm going to pay then i'm better off just staying put. That brokerage account is dedicated to funding college for my two boys. I have enough now for about 6 years of undergrad. The bills start coming in 2 years, idk if that's enough time to recover from a dot-com level crash...

[baggachipz]

I did this in my IRA and 401(k). No tax penalty or gains tax in doing that.

[criddell]

Is high-dividend a signal that the equities are more value oriented than growth oriented?

[baggachipz]

Yep, the fund picks the equities with the highest dividend payout, therfore the most value-oriented. Those tend to be old blue chips which have stood the test of time and pay out well to their shareholders. Lockheed Martin, Merck, Coca Cola, etc. When the growth economy tanks, it's an oasis of relative stability. People love their cheap sugar water.

[sethops1]

Similar. Went from near 100% VOO down to 25%, with about 50% in SCHD and the remaining 25% sitting on cash, for now.