In the past few weeks I have purchased more I-Bonds using cash in savings and bought more TIPS (Treasury Inflation Protected Securities) using assets inside my 401(k) account. I made these moves to (a) reduce risk and (b) increase the amount of future retirement income that is both guaranteed and inflation-protected. I will be continuing this strategy in 2014. Today I made some more year-end changes.
The DBC ETF is a commodity investment which has not done well and which I have duplicated as an asset category inside my 401(k) account.
The second reason I sold these shares now was that I wanted to harvest the capital losses this tax year. Why wait for 2014 when I know now that I would not buy these shares again? I want to deduct these capital losses to offset 2013 gains I have realized in other investments.
I’m going to do another investment review on Monday to see if I want to rebalance or just simplify my portfolio. I’m all about simplicity and I don’t need complexity to attain my retirement income goals. I know for sure I will be moving money from my 401(k) core funds to the self-managed brokerage account. I can lower my fund expenses by doing this because I have access to Vanguard and Fidelity funds inside the brokerage account.
What year-end moves are you making?