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Make use of the tax allowance 📃

good morning 👋🏼 i hope you slept well and your portfolio doesn't keep you up too late at night (haha)

As I'm still relatively new to the game, I can unfortunately only contribute small things to the community as far as stock information etc. is concerned. My current knowledge/experience doesn't allow for more at the moment. 📝

Accordingly, I'm more of a beneficiary of your knowledge and the associated posts about the market and constantly have questions. ⁉️

My portfolio has done (relatively) well over the last few months and now I'd actually like to take advantage of this year's tax-free allowance. One idea would be to invest parts of $GOOGL (+0.07%) or $NVDA (-4.18%) as I have made the biggest profits here and would actually like to realize some of them. 👀

What do you think? Thank you for your time and all the great information you so diligently post here!

15 Comments

First of all, welcome to the game & I think you have a pretty tidy portfolio for not having been in the game for so long. Sure, a €200 position won't make you rich, but I assume that's a bit of a build-up?

Would you really make the sales just for the tax-free amount, i.e. get back in immediately afterwards, or are you planning to do something else with the money?

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sakamotoo@sakamotoo

@DieEnte7 hey, thanks for the answer! The small 200€ positions should actually be removed, as I opened a few positions at the beginning (with 1000€ starting balance) to better understand the stock market. In the meantime, however, I see more potential elsewhere, so I will liquidate or reallocate them when the time comes.

I would sell them because of the exemption amount and to build up a new cash position. I currently only hold just under €600 in cash

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DieEnte7@DieEnte7

@sakamotoo So having an "iron reserve" of 2-3 months' salary is not wrong, but in my opinion you don't need anything more than that as an artificial cash reserve. But I'm also a fan of slowly building it up with your current income instead of selling good stocks like Alphabet.

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Olli@Olli68

That almost sounds like the non-glasses wearer who buys a pair of glasses just because they're on sale. 🫢
Think about it!

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sakamotoo@sakamotoo

@Olli68 you're right :D I'm just wondering WHEN you should realize profits haha

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Olli@Olli68

@sakamotoo Simply ask yourself for each position whether you would buy it today. If yes --> hold, if no --> sell immediately.
I wouldn't make an investment decision because of taxes. Otherwise, at some point you will only have the losers in your portfolio and you will have sold the winners.

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TradingHase@TradingHase

These two are of course quite "safe" stocks. If you want to build up more returns with the cash in strongly rising companies, it would make sense.

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sakamotoo@sakamotoo

@TradingHase well, that would be nice of course, but I have to honestly admit that I haven't found these "rapidly rising companies" yet :D

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TradingHase@TradingHase

@sakamotoo Then you haven't read much here yet

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sakamotoo@sakamotoo

@TradingHase yes, but I still have to find out how I can get a picture of any shares myself without simply buying them blindly

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TradingHase@TradingHase

@sakamotoo You should certainly do that. 👍🏼

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ECB_Hater@ECB_Hater

If you want to realize something, then do it. Which makes me wonder a bit what your strategy is 🤔
Personally, I would never want to sell NVIDIA and Alphabet.

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market_maestro_2368@market_maestro_2368

Good morning ☀️,
You can certainly take advantage of the saver's allowance.
But if you look at your portfolio, there are also loss-making positions.
It is more clever to offset these against the gains within the one-year period and to balance these positions accordingly, in addition to using the tax-free amount.

We will all see more red positions in the near future and sometimes panic.
So don't rush and the end of the year is not that far away.

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sakamotoo@sakamotoo

@market_maestro_2368 that would mean filling the loss pot (selling negative positions) in order to have more tax-free allowance? Do I understand you correctly? 😅 Thank you for your answer!

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market_maestro_2368@market_maestro_2368

So by the one-year period I mean if you realize gains and then still own loss-making securities. Then both at the same time or within the same calendar year.

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