Easy Tax Solutionz
|Posted on October 11, 2015 at 1:30 AM|
1. Reduce the size of individual stocks if they become more than 5 per cent of your portfolio.
2. Sell any stock if its market price is 25 per cent more than its intrinsic value.
3. If you can wait 12 months from date of purchase to take advantage of capital gains tax discounts, do so.
4. If you can sell in a tax free environment (pension phase in your SMSF), that's great.
5. If you have bought a stock expecting price increases and this does not eventuate, re-assess whether it has a place in your portfolio.
6. If you have bought a stock for its income and the income does not eventuate, sell the stock.
7. Set a stop-loss for all stocks – say 15 or 20 per cent – and exit the stock if the point is reached. Exit dispassionately and clinically.
8. Know what you are going to do with the proceeds before you sell.
by Bina Brown