I’ve a dilemma and I would love your enter.
Many years in the past I inherited a big quantity (~7 figures) which is in a inventory portfolio in an estabilished German financial institution, let’s name it TheFinancial institution.
In the final years I’ve discovered extra about investing, my very own threat tolerance and set my monetary objectives.
I’ve concluded that, whereas the portfolio has carried out effectively, it’s not practically diversified sufficient and to not my liking.
TheFinancial institution is in an costly financial institution: 1% charges for trades beneath 50k, 0.5% above that,
and (the worst half) 0.2% p.a. charges for portfolios on high. Of course I’m not proud of this.
My dilemma is whether or not I ought to
1) -Move the property to some cheaper however respected dealer/financial institution, with flat charges and no portfolio p.a. prices.
-Sell the bulk and reallocate to a extra diversified portfolio.
2) -Stay at TheFinancial institution
-Sell & reallocate to a extra diversified portfolio.
At first look it looks as if a no brainer: Leaving TheFinancial institution is the wise choice.
However, I’ve reservations:
1) The monetary relationship is outdated.
My household has been with TheFinancial institution for many years and I’ve basically been banking with them since earlier than I used to be born.
They ‘know’ me financially, or at the very least they know that I do not ‘splurge’ though this massive
quantity has been at my disposal for a few years.
I’m in fact not being sentimental, somewhat I’ve a tough time estimating the worth of a long-lasting relationship
with a German monetary establishment. Is there a possibility price when ending such a monetary relationship? (e.g. higher charges for a mortgage). The greater prices of TheFinancial institution are in fact annoying and never aggressive in any respect, however they’re additionally not detrimental.
2) The tax state of affairs is opaque and presumably difficult.
The unrealized capital features on most positions is important (~60%+).
Most of those positions have been purchased earlier than 2008 and thus could be bought tax-free beneath German legislation.
However, some positions the place additionally partly or wholly entered into after 2008.
Hence, predicting the taxable features is extra difficult,
particularly as a result of I sadly do not need a deal with on when and which transactions happened, since I wasn’t controlling the portfolio.
I’m frightened that transfering to a less expensive dealer/financial institution, they may mess up the tax calculation once I promote
and I’ll don’t have any approach of verifying it.
So what do you suppose? Is there a possibility price in leaving or is it negligible? Any different ideas?