You own a highly appreciated stock and you want to diversify, but selling triggers a large tax bill. The natural instinct is to defer and avoid the tax as long as possible. That instinct is often wrong. Holding a concentrated position means carrying far more risk than a diversified portfolio, and the cost of that risk compounds every year you wait.
This calculator generates an optimal multi-year selldown schedule: how much to sell each year, when to pay the taxes, and how tax-loss harvesting on your replacement ETF portfolio offsets part of the bill.
For the full analysis, see our research note: Out of the Frying Pan and Into the Fire.
Adjust the inputs and click Run! to compute.