Many investors near retirement fear making the wrong move—but few realize that maintaining the status quo might be the most dangerous decision of all.
A potential client walked into my office with a solid plan. He had carefully arranged his accounts, set a conservative pension strategy to protect his spouse, and built a lifestyle that fit his values. But when we looked at his portfolio, he hesitated. Selling meant taxes. And avoiding taxes felt like a win—until we dug deeper.
Staying Put Isn’t Always Safe
The problem wasn’t what he owned. It was what those investments were designed to do: grow aggressively. The portfolio grew nicely during his earning years, but now he needed income and stability. If the market went down, he risked losing more than money; he risked losing peace of mind.
We walked through the math. Yes, selling would trigger taxes. But keeping his growth-heavy portfolio in place meant the portfolio took on unnecessary risk, just because he wanted to avoid paying taxes. And, since his stocks grew, he had the money to pay the tax bill. Once he saw the cost of inaction, he chose to rebalance. He shifted into a more conservative mix, paid the tax, and gained the best possible return: peace of mind.
Taxes Shouldn’t Dictate Strategy
Investors often fixate on taxes, and for good reason. People don’t want to give up a chunk of their hard-earned gains. But avoiding taxes shouldn’t override common sense. In this case, the smart move was to treat taxes as part of the overall plan—not an obstacle to financial security.
Strategic investors align their investments with their goals and risk tolerance. And sometimes, the only way to move forward is to accept a small cost today to avoid a bigger problem tomorrow.
Take Control Before Markets Do
If you’re approaching retirement, ask yourself: does my portfolio reflect where I am in life, or am I clinging to past strategies that no longer serve me?
Take the next step: Get a Cross-Border Financial Evaluation at profile-financial.com/call. We’ll discuss your goals and see how we can help.
Douglas Goldstein, CFP® is the director of Profile Investment Services, Ltd. www.Profile-Financial.com. He is a licensed financial professional both in the U.S. and Israel. Call (02) 624-2788 for a consultation on how to set up your American assets to meet your financial goals. Securities offered through Portfolio Resources Group, Inc. Member FINRA, SIPC, MSRB, FSI. The opinions expressed are those of the author and not those of Portfolio Resources Group, Inc. or its affiliates. Neither PRG nor its affiliates provide tax or legal advice.
Published June 11, 2025.