In a fund such as a Vanguard S&P 500, should you periodically take profits (capital gains) and then reinvest them into the same fund? Or is it better to just leave it alone? If it’s the latter, won’t those funds theoretically be ‘unrealized’ forever?
For example, if $3,000 was deposited into an S&P 500 mutual fund and a year later it rose to $4,000, would it not be smart to ‘realize’ the $1,000 and then re-invest it into the fund?
I’ve read to ‘set it and forget it,’ but part of me wonders if this is just leaving money on the table, so to speak, if the gains are never realized.
Thanks for any insights!
Submitted February 08, 2024 at 12:05AM by Funny_Guitar_4202 https://ift.tt/CVN5Jrs
