Give to Charity
Rather than selling stock or pulling from tax-deferred accounts, some retirees choose to make one large donation of shares to take advantage of the charitable donation tax break, which allows you to deduct a certain percentage of your donations from your taxes. In addition to stock, you can donate appreciated property like jewelry, real estate, art, antiques and securities.
“Donating highly appreciated shares of stock is an attractive way to fund a large donation,” said Patrick Ritter, a certified financial planner with Fiduciary Advisors Inc. “You avoid the capital gains due if you sold it yourself and deduct the full fair market value of the shares donated to benefit your tax return filed the following April.”