A Store of Value

jmski52

If a day like today makes a big difference for you, just remember - sell a loss position along with a position in which you have gains - and balance the loss against a gain.

You can now sell more of your stash without such heavy tax consequences. If you think I'm being sarcastic, I'm not.

Any holdings you might want to sell will now still provide you needed capital for whatever you plan to do. Instead of paying Uncle Sam that 28% on a larger number, you will be paying it on a smaller number. You still have value, and the reverse of a big tax bill is a buffer against a market loss, in the event that you sell for less than you thought you'd be selling for a few days ago.

You still have value. Use this opportunity to sell what you didn't want anyway, and if you are liquidating a loss position, sell a little of something in which you also have a gain.

I'm only advocating this approach if you simply must sell for some good reason. I'm not selling right now because I don't need to sell anything at the moment. A tax dollar saved is just as good as a dollar of pure profit.