I have a stock that has done very well of late (MRNA) and I think it is time for me to take some profits - it looks overpriced and is 10X my investment point. While I want to ride it longer - I want to pull some profit out. My question is, I have equal amounts invested in both a traditional IRA and a Roth IRA. Is there a decision tree for which fund I should take the profits in? I have no significant cap gains, and at 56 still growing not drawing on these funds. THanks first time Q. E
I assume you already knew the difference between Roth IRA and regular IRA and I also assume you know the tax rules of both. So not sure why you asked. What are you planning to do? Is your plan to sell some and keep some?
Yes, I am just wondering if I should take profits in the Roth now and let the money ride in the traditional IRA. I typically make safe investments in the IRA and a little riskier in Roth. I think I've seen the big payoff on this stock already so perhaps I'll sell out both sides.
Let the money ride assumes the stock will keep going up. If then why would you want to sell? If you think it has peaked then why would you want to hold? If you are not sure either way then assuming you own none of that stock. Which account would you use to buy it? Pick one to keep the stock and tjenother to sell. Only you know yourself better than some strangers on the internet.
Here’s my thought — I’d sell in the tIRA and let the stock run in the ROTH. If this stock continues to perform then you’ll probably be taking cash from the ROTH first (taxes already paid), while your tIRA continues to build. You want that ROTH as big as possible so you never have to pay taxes withdrawing from the tIRA. So, let your runners run. Grow that ROTH. Hoping MRNA goes BIG for you!
