Monday, December 12, 2011

What are some ways of protecting the value of my stock portfolio w/out incurring immediate tax liabilities?

I have a significant amount of capital gains in my stock portfolio. I have a feeling the stock market is near a high. How can I lock in the value of my portfolio without incurring immediate capital gains tax liability?|||If your stocks have options, you can buy put options on the stock. Then if the stock goes down, you can exercise your options and sell your stock at the strike price. If the stock goes up, you just lose the money you paid for the option.





Think of it like car insurance. You spend a little money to lock in a guaranteed return if it crashes.

No comments:

Post a Comment