The Mag Seven Tax Trap – What Now?
The returns for last five years for the Magnificent 7 (a) have been stellar.
Source: Fact Set, Standard & Poor’s, J.P. Morgan Asset Management. *Share of returns represents the Mag 7’s contribution to the index return. Past performance is no guarantee of future results.
As an example, if you had invested $100,000 in Nvidia three years ago (12/30/22 to 12/31/25), the value would be $1,276,174 and with a total overall return of about 1,176% per NVIDIA Stock Calculator.
Maybe you’re thinking I want to take those paper gains and make them real, or I want to diversify my position; a $1,176,000 long term gain would be taxed at 23.8% Federally, the tax would be over $279,000 plus state income tax! That’s a real gut punch, coming!
You feel tax trapped but what can you do?
At Citadel Wealth Management (CWM) we are passionate about tax strategies and tax management. We can lay out several options on how best to deal with sizeable gains in stocks and other highly appreciated assets. We look to combine tax strategies to set up a tax savings powerhouse. As an example, exploring the power of the Charitable Remainder Trust (CRT) and some stock sales could be right for you.
Taxes are personal, come see us Citadel Wealth Management, and we will conduct an investment and tax return review to identify tax savings opportunities. It’s not what you make, it’s what you get to keep!
(a) The Magnificent Seven includes Alphabet, Amazon, Apple, Tesla, Meta Platforms, Microsoft and Nvidia.