I am stuck with 300k in capital gains on a robo advisor portfolio charging me 0.25 in fees in expensive funds dragging down my overall returns.
I want to bring this over to a smart software tool that will take the assets in kind and slowly (over years) move me out of positions and into regular index funds boglehead style.
I dont want another managed fund but rather a specific tool or service to do this that makes sense?
ROBOAdvisor locked me in- how can i get out with minimal tax??? Any software or vendor which can help me?
byu/Wolverine-91826 ininvesting
Posted by Wolverine-91826
5 Comments
You can’t.
Probably cheaper to pay 0.25% fees than the capital gains taxes at this point. The Robo advisor is doing something right.
You can fire a robo adviser just like you can fire a human one. There’s no being locked in. You might have a difficult time finding a brokerage who can hold the investments the robo adviser got you into but that’s not being locked in.
Call your brokerage company and tell them you want out of their robo adviser program. They cannot force you to stay and they cannot force you to liquidate your holdings.
If you want to settle the positions you currently have, you will owe tax on the realized gains. In order to change your investments, this is what you have to do.
You can transfer your positions to another brokerage (new robo or none or advisor) without settling/closing your positions. Depending on the platform you could just turn off the robo. That might save you on fee.
Keep in mind capital gains liability lessens after holding things for more than 1 year.
Consult with a tax professional or the support of your brokerage to confirm
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