I invested money conservatively for buying a house in 5 years. 5 years later I don’t want to buy a house, is there a tax efficient way to re-allocate my investments?
5ish years ago I sold a house and had about 200k of cash left over. I didn’t need a house for a few years because I was going to be living overseas so decided to invest it. But I thought I’d only be overseas for 5 years so picked a TAED 2025 fund to make it easy. Because it was a big chunk of money it was just invested in a normal exchange account rather than an IRA etc.
Now it looks like I won’t be buying a house for another 5-10 years. I’d like to move my investment to something a bit more aggressive, but it appears that that would mean I need to pay capital gains taxes on the sale of the investment. I primarily invest in index funds / target date funds so I don’t have some sort of loser stock to sell to offset the gains.
To make matters more complicated, while I’m living overseas my employer is helping with my living expenses which is great, but that assistance is considered taxable income so my earnings for the year are way over-inflated. I think my W2 from last year was somewhere around 500k. My employer offsets the added taxes but I assume all of that makes it less desirable to sell investments in the same year.
Is there an optimal strategy for reinvesting my money while minimising tax burden for this?
Posted Jul 1, 2025, 4:26 PM UTC