I got a small windfall – a few hundred thousand. Time horizon is short to access the funds again – 1-5 years, so probably not enough time to weather a substantial market downturn.
Wanting to invest in something that will give me long term cap gains, not dividends or interest, to help manage taxes when I FIRE in about a year.
Any ideas? I think I’m looking for a purple unicorn
Small windfall into Long Term Cap Gains
byu/HeyHay123Hey infinancialindependence
Posted by HeyHay123Hey
2 Comments
If it is over a year you could use BOXX. It is a box spread and yields roughly comparable to SGOV but with (nearly) all of it as capital gains. Note that if you sell in less than a year this will result in higher taxes as it isn’t state tax exempt the way SGOV is. If you are in the 0% LTCG bracket though in retirement it is effectively tax free interest.
[https://www.reddit.com/r/Bogleheads/comments/1kkdnrk/eli5_how_does_boxx_work_and_how_is_it/](https://www.reddit.com/r/Bogleheads/comments/1kkdnrk/eli5_how_does_boxx_work_and_how_is_it/)