In this video, Kevin Gormley, CFP®, CPA, PFS from Leading Edge Financial Planning unpacks the emotional and financial journey of realizing capital gains. Using a thought experiment with a “benevolent uncle,” he explores the stages investors may go through from excitement to shock to acceptance when they discover how much tax can impact their uncle’s gift.

Along the way, Kevin highlights practical strategies that may help investors better prepare themselves to pay taxes on capital gains.

Key Topics Covered

• Introduction to the capital gains dynamic and its emotional impact
• The three stages investors may experience: euphoria, shock, and acceptance
• The “benevolent uncle” and the million-dollar gift example
• Understanding after-tax wealth and the reality of taxes
• Emotional responses and strategies to cope with capital gains taxes
• Practical approaches to managing capital gains, including:
  – 1031 exchanges for real estate
  – Letting winners run in stock portfolios
  – Charitable giving with appreciated securities
  – Step-up in basis at inheritance

Actionable Takeaways:

• Share your feedback: Did you find the “benevolent uncle” story helpful for understanding capital gains?
• Consider strategies for managing capital gains, such as 1031 exchanges, letting winners run, or charitable giving.

Taxes on capital gains can feel overwhelming, but with the right mindset and planning, they don’t have to derail your plans for that money.

Connect with Kevin Gormley

kevin@leadingedgeplanning.com 
☎️ 865-217-7779