How should I rebalance a concentrated stock position for tax efficiency?
#1
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#2
I’m trying to figure out how to handle a concentrated position in my portfolio without triggering a big tax bill. The stock has done well, but it’s now over 40% of my holdings, and that lack of diversification makes me nervous. I’m curious how others have approached this kind of risk management while being tax-aware.
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#3
I did something similar when one stock ballooned to half my portfolio. I set a hard cap and started selling small chunks every quarter to rebuild a real diversification.
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#4
I kept worrying about the tax hit, so I moved gradually. I trimmed a bit every few weeks, tracked the gains, and tried to balance with new purchases in a broad fund so the tax bill didn’t spike all in one year.
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#5
I experimented with gifting appreciated shares to charity through a donor-advised fund. It helped diversify a bit while keeping exposure through the fund, but it felt like trading one problem for another.
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#6
A buddy did staged sales and parked part of the proceeds into a diversified sleeve. It gave me a sense of control, though I’m not sure it was enough to truly quiet the concentration worry.
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#7
I tried keeping the concentrated piece as a core holding and adding to other things slowly, but every time the stock popped I fretted about selling into strength.
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#8
I paused and wondered if the real problem wasn’t the stock itself but my lack of a plan for how to handle volatility in a big winner.
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#9
If this thing dropped 20 percent, would you be ready with a plan or would you be guessing on the spot?
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