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One of the practices that I adopted years back, for better or worse, is to take short term and capital gains distributions (taxable accounts only) in cash. I am already paying taxes on them, so why not simplify things by avoiding reinvesting.
Hi Maurice,
What are you referring to when you say "why not simplify things by avoiding reinvesting"?
Still unless you decide to give up the tracking and totally trust the brokerage firm, you will want to track the cost basis to check accuracy.
Hi Maurice,
Thanks for your reply and no problem in the delay. Just make certain it does not happen again!
Since I do in fact leave the tracking to Vanguard in my case, I did not understand your your original post. And I too would not want to reinvest distributions in my taxable account if I felt the need to track the cost basis.
Comments
What are you referring to when you say "why not simplify things by avoiding reinvesting"?
Best Regards,
Mona
Thanks for your reply and no problem in the delay. Just make certain it does not happen again!
Since I do in fact leave the tracking to Vanguard in my case, I did not understand your your original post. And I too would not want to reinvest distributions in my taxable account if I felt the need to track the cost basis.
Best Regards,
Mona