Hello, I ran two types of tax circumstances: case 1: start with 1000 earn 10% return pay 15% capital gains tax at end of year keep doing this for five years case 2: start with 1000 earn 10% annual return, but don't sell each year after five years, pay the 15% capital gains tax I thought case two would be a lot better. But it wasn't that different: 1518.93 vs. 1503 Even running it for 10 years, not much different: 2354 vs. 2260.98 (4 percent more) After 20 years, it makes a difference (14.8 percent more): 5868 vs. 5112 But I think if you insist on never selling, you could hold on to stocks that no longer are that great. Or you could get your portfolio imbalanced, setting you up for unwanted risks (like having all your money in stocks and never selling any to convert to fixed income instruments). So I think annual rebalancing is key.. the big benefit is being able to pay 15% instead of ordinary income tax rates. It's probably more important to keep your portfolio in tune than trying to never sell anything for 20 years. What do you guys think?