I married someone with about 100k in an investment portfolio that I do not think aligns with our financial objectives. I want to transfer this to a new joint portfolio (new institution too), but doing so will force us to pay tax on capital gains that have accrued in their account the last several years.
What alternative is better?
- Sell the investments, pay the capital gains tax, and re-invest in the better portfolio.
- Keep the investments where they are.
My impression is that option 1 is superior because we will need to pay capital gains tax eventually, the only difference is in scenario 1 we pay it now rather than in 20 years. That being said, perhaps I am mistaken and paying taxes later is better.
Note that we are Canadian and the current portfolio isn't great, but it also isn't absolutely terrible, its just too conservative.
Is there a scenario that works best in all cases, or are there circumstances in which either option would be superior?