How to pay ZERO taxes on JEPI or SCHD dividends
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- Опубліковано 1 жов 2024
- In my last video where I talked about how JEPI now pays my mortgage every month, there was one question that was asked over and over. The most asked question was around taxes. Many people asked about the topic of taxes in different ways. For example, how is JEPI taxed or is the dividend (distribution) from JEPI non-qualified or qualified. There were also questions around which account type to hold JEPI (e.g. Roth IRA vs taxable). In today's video I am going to answer these questions as well as show you how you can pay zero taxes on your dividend income from JEPI or any other ETF like SCHD in early retirement.
Tax calculators
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How are dividends taxed 2:33
How is JEPI taxed 10:36
How is SCHD taxed 12:44
How to pay zero taxes in early retirement 15:04
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#DividendGrowthInvesting
The number one question I got from my last video on JEPI was around taxes. Let's talk about it.
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@@evasanz3466 The tax laws in every country can be so confusing and to add to the confusion, they change every few years due to change in party. That is one thing I do not miss about living in Germany... There was not any real incentive to be an entrepreneur or take risk.
@@evasanz3466 Incentives drives behavior!
A tutorial from Jake on how to not pay taxes? Im in.
Grab some popcorn and enjoy the ride!
Are you sure that non-qualified dividends are not taxed in an IRA? Thank you.
Everyone wants to pay less in taxes! More money for us to spend on stuff that brings us joy.
100%!! When you get excited about saving money on taxes you know you are in the 1% mindset.
And less roads to drive on
@@dodiloi To funny, I guess Ukraine needed roads.
As a a CPA I tax plan throughout the year but it starts getting real starting in October. We both work so our portfolio does figure into our tax bill. One day we will have to figure in Social Security in that tax bill and your viewers should keep in mind.
This was good info to give your viewers what’s involved in figuring taxes. It can get quite involved.
Not sure if you will have a video next week, so Merry Christmas and Happy New Year Jake, to you and your family. We are all blessed!
That is a really good point.. I haven't even started talking about ss on the channel yet. There are so many different variables to consider. Thank you so much! I will create a video next week. I wish you and your family a Merry Christmas!!
Dude. I was literally thinking about this the other day! Decided to squash that thought cause it would require brainpower I don't wanna use rn... haha A video would be great!
And not just Social Security... Medicare premiums vary based on income from 2 years before. Social Security taxation is a step function - one additional dollar of income will make 50% of SS taxable (and there is a second step making 85% taxable), so $1 income may result in many dollars of taxes. I don't know if Medicare premiums are stepped or linear.
If you are not yet on Medicare but purchase insurance on an exchange, subsidies are also a step function based on income.
@@Sylvan_dB Ohhhh Shhhh....you know what I was gonna say
So buy JEPI in a tax advantaged account is what this tells me.
well depends when you plan to use the income. If you want the income after 59.5 then tax advantaged is the way to go. If you want to live off the income before the age of 59.5, then you could consider a taxable account and look at keeping the income amount within the ranges discussed in the video.
Thanks, saved me lots of time listening.
@@DividendGrowthInvesting yeah so contribute to a 401k
JEPI for IRA, SCHD for taxable account….duh
:D yup but.. if you keep your income low enough, you can pay zero taxes in just a taxable account
I love those "Pay No Tax" breakdowns you do. I saw a video you did a long time ago about it. And that has been my guiding plan as we advance. I know things can change, but it is a perfect fit for me as the clock ticks away. Thanks for all you do!👍
Puts a huge smile on my face reading this! I am so glad this was helpful for you!!
I guess no one is getting social security payments in retirement
As a german i have tears in my eyes watching this video 😵 Our tax free rate is 1000€/$ per person per year.
1K! 🤢
Yeah :( I remember. I was always shocked what I paid in taxes in Germany. But you do get more than we do here in the US. I’d trade your healthcare system and taxes for ours in the US!!!
Averaging into JEPI in my Roth. Get that 14% annual drip tax free!
nice!! I bet it is such a cool feeling seeing it go up each month tax free!!
Love this topic, what I usually recommend to people is to keep that dividend income under 89k for filing married, and move to 0% income tax state and you officially pay 0%.
You are in TX so you are set my dude, Im going for either WY, or TN.
exactly!! But in fact you can actually go over $89K because you have the standard deduction. You could get the $89K plus whatever the standard deduction is that year.
Depending upon where in Texas the property taxes are off the charts, so they get you one way or another. You definitely can try to minimize the burden upon yourself, but I find Texas property taxes to be insane. I choose not to move there due to that one issue and unfortunately I see the state flipping in the next decade due to illegals and the exodus from California, Washington etc
@Blake lol I love boring. But I decided on TN
Let me know when you find a way to not pay the tax for a foreign investor
Are you allowed to collect dividends from positions in a Roth and never sell and never be taxed on those dividends?
Technically as long as you keep under the the 5 year rule on principal amount.
Appreciate your efforts in making the 30min video. Wondering how many hours was your original content. Just for your subscribers like me who wants the summary of this video.
1. Understand Qualified vs non qualified dividends and what your holding pays
2. Understand their taxation
3. Simulate your taxes on couple of tax calculators
Damn. Step one looks like I need to get married. So far....not working out lol.
Lol well I got 99 problems and money ain’t one of them.
Watching this now is hilarious when you get to the inflation part lol
Fact check: google foreign tax credit. Google 199a deduction for reit
What a great video. We're not newly-retired, but we are new to dividend stocks.
We've lived in Latin America over 14 years, so our expenses are very low already, & we live great.
By watching your video, I see will have to pay zero taxes on dividend income. This is a Marvel to me, so thank you very much.
Will you be doing your own taxes or using a professional ?
I do my own with turbotax. I have learned SOOOOOO much after having filing my own taxes. Takes some time to learn... lots of google searches and youtube videos, but it was one of the best thing I ever did to grow my financial literacy.
Bro thank you for this information, I needed to hear this. I live in a rural area where the cost of living is low, so I need around $40,000 a year in dividends in order to retire early. The cost of living here is around $30,000 to live comfortably, so I want the $10,000 to set aside and still be able to dollar cost average in to continue growing my dividend income. You really helped me and this is very appreciated.
And this is why I don't do my own taxes.
:)
I have SCHD and my tax forms show they are being taxed as "Non-Qualified Dividends"
What gives?
SCHD is 100% qualified dividend.
So, you do not pay any capital gains tax if your income from dividends are under $89,000 if married? Is that how it works? Or is that only if you sell the stock, and the profit from the sale is under the 89k? Thanks!
Looking at JEPI for a seperate IRA that i started and was wondering if DRIP with JEPI would be worth it. No taxes until i start withdrawing... Not sure if I should go more growth or a high yield dividend DRIP
Hi there, I think you may have left something important out when you were running the scenarios on income from qualified VS REITS. I am pretty sure you get a 20% deduction on REIT distributions? I am not an expert by far but I am pretty sure there is a 20% deduction available on income derived from REITS. Would love to hear your comments. Thx for putting up this video. I too plan to retire on dividends and rental properties in 8 to 10 years!!
Hey Chris!! There are a lot of nuances when it comes to how REITs are taxed. There is RoC and a lot of other things that can be confusing. Thanks for commenting!!
How do you tell how stocks are taxed... Which ones are qualified, etc?
Great video. Question. I’m 43 and started my investment journey a bit late. I currently have SCHD & FSKAX in My Fidelity Roth IRA. Planning on adding JEPI after watching this video. I also have a taxable brokerage account but not sure where to put my focus for growth & dividends at this stage of my life. I have been focusing on VOO & a few single stocks like QYLD etc. any advice as to where I should really be putting the majority of my $ in my taxable account whenever I get paid? I appreciate it
Max out Roth and HSA(if you have one) first and put the rest into taxable accounts. If you're looking to reduce your tax burden as much as possible put things such as REITs in your Roth account and qualified dividends such as SCHD in the taxable account. I don't want to give advice on specific stocks or anything but generally you will do much better by paying attention to how your payments are designated and if you do go into growth stocks that don't pay dividends keep in mind they will be taxed at long term capital gains rates only after holding them for a specified amount of time. If you have a capital gain "realized" meaning you sold it for a profit and you didn't hold long enough it will be taxed at a higher rate than the long term capital gains rate that's much more favorable.
@@leitm3912 nice! Thanks for the breakdown man. I really Appreciate it.
Taxes must be estimated with a real world example that usually includes social security income. To do this, you have to complete the SS tax worksheet first with an estimate of both SS income and dividend income, then from there complete the Qualified dividends and Capital gains worksheet. This will give you a ballpark total tax burden.
Hi I’m 14 and I’m starting dividend investing and I’m planning on investing in both jepi and schd but I’m wondering if you think that there are any other specific dividend growth stocks that I should invest in, I watched your time horizon video but am still wondering your thoughts. Love the content keep it up
Hey! I would highly suggest starting with SCHD/DGRO or something more growth oriented if you want to really focus on dividend investing. JEPI would be better to look at later down the road once you get closer to actually living off the income from your investments. You are in wealth accumulation mode in your life, you should ideally be focusing on growth.
@@DividendGrowthInvesting Thank you but why would I not want to invest in jepi yet when I’m planning to use je pi’s dividends to then invest into other dividend stocks to expand my dividend portfolio?
@@mackskroll15 because as he already said "you are in wealth accumulation mode". There are better things to invest in to grow quicker than jepi, with a little more risk involved probably
I currently hold my Roth with Vanguard and my intention was to exclusively have vanguard etfs in my Roth. Vanguard has excellent customer support, but I am wondering if it would be wise to switch platforms to M1 so I can take advantage of other brands and other etfs that aren't with vanguard. One drawback I see with doing is the lack of potential customer support that vanguard really excels at
You can purchase other ETFs inside of Vanguard. Years ago you would have to pay a fee to do this, but now you can purchase them. M1 is great if you want to automate your investing.
Our company had Vanguard stocks through the 2008/2009/2010 time frame. I made nothing. Do not pay well in a recession/depression. In fact in the 10 years before I was laid off,
in 2010, I made nothing. In fact, NASA had to pay the shortage in the pension funds. No Vanguard for me.
"How do I reach these kids?" Lmao
lol :D
Another awesome video! I invested in Jepi this year and so helpful to know what’s expected for tax in a few months . Thank you !
Hey Fred! Glad it was helpful! Thanks for watching!
I really like JEPI but it seems like there is no way to escape the 30% withholding taxes for non-US residents. Anyway, thanks for the great content 👍.
This was such a helpful and informative video. And also made me want to increase my SCHD exposure lol
Glad it was helpful! There are a lot of ways you could approach this depending on your time horizon and goals. If you have longer before you plan to retire, focusing on qualified dividends is the way to go!
📣 No more taxes! No more taxes! 😁👍🏼 Happy Sunday Jake! 🎄
No more!!! Happy Sunday to you as well!
This is wild. So if I save up a little over 400k and split it between SCHD and JEPI, I could be making about 30k a year tax free…. And be free…
mind blown!!!
Nicely done video with useful links to planning tools - very good information for those looking to understand how your tax can be calculated and how you can simulate various allocation strategies between qualified and non-qualified dividends
this is by far the best video I've seen for qualified dividends and how to make them work for you.
Thank you so much! I'm glad the video was helpful!
How does the taxes withholding work for etfs that focus on non us companies, like SCHY?
My understanding is the international tax would be taken out of the Net Asset Value (NAV) and reflected in the dividend received. You would not see a deduction or expense in your history, it would be taken out of the amount you receive. The dividend you see in your transaction history would be the dividend with the international tax already taken out.
JEPI is best left in 401k or IRAs.
Depends on if you’re retired or not.
What about buying JEPI in a Roth IRA?
Basic question, if you had these qualified dividends in normal account and were making decent money from a job, you wont be paying any zero taxes on these dividends, correct? When i am retired and have no other income and below the threshold you show, only then you pay no taxes.
Correct
I'm counting down the days until I can contribute to my Roth IRA again! This year, my contributions will be 25% VTI, 15% VXUS, 15% VNQ, 20% DGRO, 15% SCHD, and 10% SPYG
Really great ETFs!
@@DividendGrowthInvesting Thanks so much! I got the idea from you, ORJ, and Joshua Mayo 😁
Great information not discussed enough in FI youtube
Its not the sexiest topic, but so important!! Thanks for watching!
I love your format of explaining all these details and running different scenarios. It is more practical and informative.
Glad you liked it!
I've been waiting, happy to listen! Love tax conversations. Hopefully the algorithm rewards them.
Hey Matthew! So glad you are here!
@@DividendGrowthInvesting I've not gone anywhere, Jake. Just been watching and loving your approach to retirement since the rentals were sold. Gotta love being well prepared to take advantage of opportunities when they appear.
Excellent video Jake. This helps a lot with my dividend income for taxes.. Eye opening!
Thank you!!! You pass the nerd test if you get excited about talking about taxes :D
Very interesting video, but you really left out the most important consideration - the effect of tax drag ** during accumulation **. The distribution from JEPI substantially increases your tax burden during accumulation. And for a fund that already underperforms SCHD and SPY, losing 22-32% of the distribution to taxes every year would be devastating to accumulating wealth. The extremely high distribution is basically 75-100% of the expected total return of the fund, so 85% of any returns, every year, whether the fund is up or down, will be taxed at ordinary income rates! It's a tax disaster.
For medium to high income earners it's an absolute non starter. For a MFJ household with each spouse making $75K ($150K total), their total tax burden with no ordinary income from JEPI would be roughly $16,500. With $50K of JEPI distributions added to that during a typical accumulation year, the tax burden jumps to $27,500, effectively eliminating $11K of the $50K of JEPI income! 22% in this case, more for higher earners! In a year the S&P returns 10%, even if JEPI matched it, the net return would only be 7.45% due to tax drag and management fees. That's even worse than paying a "fund manager" a 2% annual fee to manage a one-fund portfolio of 100% SPY! 🤦🏻♂
It's important investors realize this because FIRE happens at the end of a multi-decade accumulation process. Tax impact doesn't begin at FIRE. There are a lot of factors to consider and your amount of household income during accumulation matters substantially. Tax-wise, it is likely going to be smart to coast-FIRE your taxable account to minimize the tax drag and start paying down your primary mortgage early instead, depending on your mortgage interest rate.
FIRE with $60K of SCHD dividends, a $15K self-employed part-time job that is mostly negated with tax deductions and no mortgage payment due to having a paid off house is MUCH more tax efficient. Your "portfolio" is also better positioned for long term growth, more safeguarded against high inflation, and less susceptible to tax code changes. Not having a mortgage gives your retirement plan the resiliency of having very low fixed expenses relative to total expenses. Housing expenses are the highest expense category for retirees.
Things to think about! Personally, I'd get off the JEPI train entirely. There's just no supportable investment thesis for that fund vs. a simpler, better performing and more tax efficient fund like SCHD or VOO.
Very good point! While in the wealth building phase of your life, you want to focus on growth and tax efficiency. The focus of this video was more around once you reach your goal and start living off your dividend income. JEPI can be a great way to increase your portfolio yield with limited risk (vs other ultra high dividned yielders). JEPI should not be a consideration if you have 5+ years before you plan to live off your portfolio for the reasons you mentioned above. JEPI is a great option for lose looking increase their portfolio yield and are closer to retirement.
@@DividendGrowthInvesting I do like JEPI for the lower volatility and the total return performance for being a high yield fund. Building a small allocation during the last 5 years of the accumulation phase isn't the worst approach, for sure. Especially for lower income earners. Also, as your SCHD income naturally grows over time, you could slowly sell off your JEPI position and move it into SCHD or VOO. I'd want it gone by the time I take social security for sure. Social security, qualified dividends from SCHD and a paid off primary residence are a strong, very low tax combo!
Really enjoyed the video. These are exactly the kinds of topics people need to be thinking about and discussing. Love the content and the channel man, keep it coming!
@@CalmerThanYouAre1 Hey, Thomas! It would be interesting to know your opinion.
Which way of capital accumulation would be more correct in terms of taxes, if:
Income per year on Form 1099 $350,000 +
House paid off
Now it turns out that it is extremely unprofitable for me to buy any dividend stocks and ETFs, because I pay high taxes.
@@denis3703I would need more information... Are you a single filer? Married filing jointly? What will your 2022 taxable income be? How much net profit are you showing to the IRS after expenses against that $350K?
If the entire $350K were taxable, I'd say investing in a traditional IRA and Solo-401K would be something to consider. Along with a Roth conversation strategy once you retire. Another option would be investing in rental real estate. You can offset all of the rental income with expenses and depreciation if you're doing it right. Tom Wheelright's book, "Tax Free Wealth" is a good one to read on this topic.
At those income levels, the net investment income tax (3.8%) gets added onto the tax rate of any dividends or capital gains, so you're getting hit even harder than most for any forced taxation during the accumulation phase. Dividend growth investing is certainly still a viable strategy, but I would do so using the Solo-401K to keep the income free of taxes during accumulation and look to rental real estate for anything you want to do above the 401K limits. And if you're younger and want access to leverage, consider 100% rental real estate as the most tax-advantaged option.
I have a similar income situation as you and I have a mix of rental real estate, retirement accounts and a taxable brokerage account (with SCHD). Since my rental portfolio is about as big as I want it, I'll be paying of my primary residence and maxing tax-deferred accounts until I hit 50-55 and retire. Then I'll Roth-convert those traditional accounts in retirement with the goal of keeping the conversions under the standard deduction so my dividend income and conversions both remain tax free. In a perfect world, I'll never use those assets anyway and they'll go straight to the kids tax free. So even if I end up paying some taxes during the conversion period, it will be far less than I would have paid at my current income level.
Hope that helps!
JEPI has a far superior yield than those etfs as annual income. And when adjusted for inflation assuming you sell mostly at these highs or sideways markets the s&p returns 7-8%.
Also you can offset the taxes from JEPI from investing in realestate through the BRRRR method which is what I do and leverage accelerated depreciation to offset my w-2 income, cashflow income from rentals, and short/longterm capital gains from stocks. And yes when you sell the real-estate you pay capital gains, but I don’t sell I can always 1031 exchange them to like property.
I like your video, but once your on medicare, you can no longer contribute to HSA.
This example leaves out that there he SCHD yield is incredibly low compared to JEPI. So even though SCHD is taxed more favorably, it lacks a lot in yield.
Jake, i just came across the fact that you can also withdraw money from a roth before 59.5 as long as you don't touch any gains. Can you make a video about how that could help provide additional income for us FIRE people?
Unless you converted/rolled over a lot of money from a 401k for example and have a very high $ amount in your Roth IRA, I personally wouldn't recommend withdrawing early. The tax savings are hard to beat.
I made a video on Roth IRAs that you might be interested in: ua-cam.com/video/4CFNu5xb87I/v-deo.html
@@DividendGrowthInvesting not withdrawing, but instead using the Roth funds to purchase dividend paying assets and only withdrawing the dividends produced. Would that work or am i dreaming?
Love the video inserts and fail army videos! 😅
:) Thanks for watching Veneet!
Where is the link to your second tax calculator (more complicated one)? I seem only able to find the 2021 version when I googled.
bit.ly/Taxcalculator_simple
bit.ly/Taxcalculator_advanced
Amazing video thank you
Is all of your retirement in Roth IRAs in does that matter when you are claiming the dividends on your taxes thank you
correct if in a roth you are all set
How does international taxes work in terms of International ETF Stocks like VXUS?
This is taken out of the NAV and reflected in the price that you see when looking on yahoo or google finance.
Hay Jake great video. I hope you and your family have a great Christmas. If you haven't read "The Behavioral Investors" I would give it a try. I found it to be a good read
Hey James! Thanks for the book recommendation - I will check it out. Merry Christmas to you and your family!
Please read Investopedia topic "Understanding taxation of foreign investments" It describes how you are NOT taxed by the US on overseas investments that you have paid tax to the foreign govt.
If the foreign tax is more than the US tax then nothing is owed to the IRS, if the foreign tax is less than the US tax, then you pay the difference to the IRS. It is called the "Foreign Tax Credit"
Can you use the HSA to offset taxes owed in terms of that REIT example?
Yup
Why aren't bonds qualified dividends? no one should have them if you are just going to lose 12 to 30% of the dividend yield
Good question 🤷🏼♂️
The difference having an extra kid makes is crazy. I already have 3 and the 80k ordinary/20k qualified divis still comes out positive. That's nuts.
Thank you for the education. Your short clips after recordings are pure joy😂
lol! Really glad that you enjoy them!
Excellent video! Thank you for posting.
Thanks for watching Kurtis!!
What about the standard deduction 25k. I thought that would help as well.
Yup! It will lower your tax liability up to that amount + the regular tax brackets.
If you're still doing youtube in a couple years, you have to get Lucas to do the outro for the channel! 😂
lol yeah that would actually be really funny!
We have 5000 jepi shares. And pay tax on the dividend income at 22%. Jepi yield at 12% means our net is close to 10%. We are just fine with at that tax impact.
If you have a side hustle, the best way to avoid tax when doing the side hustle is to contribute $7500 of that W-2 earnings into a Traditional IRA and check if you can maybe get a retirement savers credit to additionally save some tax on $4000 of the money contributed.
😎👍
Good video. What you think about the fear mongering on schwab bank becoming insolvent and their stock tanking ? How does that effect SCHD dividend stock even tho stocks are covered under different umbrella with SPIC in comparison to banks being covered under FDIC. From my understanding dividends stocks if you are single and make under $41k earned income then you don’t get tax on those capital gains. That’s from my understanding but I could be wrong.
Hi, how do you figure out whether a stock provides qualified or ordinary dividend?
Hey Tom if a company has its HQ in the US and is NOT a REIT or a bond or MLP, then you can assume in most cases it will be qualified. The others I mentioned would be non-qualified.
Thanks for your videos, I just signed up for seeking alpha premium using your link below.
No way around paying taxes
My taxes are pretty wild because some of it is qualified, ordinary, short term gains, long term gains, and some might be ROC. Always glad for technology when I can just upload the file from brokerage and it fills in for me
oh tell me about it!!! I love just uploading into turbotax and i'm done within seconds! lol couldn't imagine entering every transaction.
the only sure way....use money in a roth account.....
Yup! But you have to wait till you’re 59.5 to access the income that aren’t just contributions.
I have JEPI, DIVO & a REIT $O Realty Income for the dividend income portion of my IRA. I love $O for the diversification & great Income it will provide. But now I'm wondering if I should have the REIT? This gets complicated to me. I know what I need for income will be way under $89k. $2000/month from Social security...so I'd only need 48K/year of income. So is this a non issue for me? Any advice I'd appreciate.
That second tax calculator is in no way shape or form accurate. Based on my finances last year, it claims I owed 54K in taxes for last year. I actually got money back. Not accurate at all.
Should I pay tax on devidents if I reinvest it?
If they are held in a taxable account, then yes. If in a Roth IRA then no.
Thank you for another excellent video sensei!
Glad you enjoyed it!
My guess before watching the video is that you hold it in an Ira during your working years and then do a Roth conversion ladder up to the standard deduction each year post retirement.
Nope ;-)
All of my investments are in mutual funds in my Fidelity account. When looking at these funds, I couldn’t tell whether the dividends were qualified or non-qualified. Where is this specified? I couldn’t even figure out how to search Fidelity for funds that had qualified distributions. Is it as simple as making sure that there are no foreign companies and no bonds?
If you have been with them for years, you could check your tax documents from previous years to confirm what portion was qualified and what was nonqualified.
@@DividendGrowthInvesting I have been with them for years and I did look at the tax documents. The document specifies how much was qualified, but does not identify the source of the qualified dividends.
is there any fund that pays nearly as well as Jepi but has a qualified (or largely qualified) dividend? I'm fairly new to this and this video was very helpful!
You won't find a qualified dividend ETF that pays above 4-5% that is worth looking into. If a dividend fund has over a 4 or 5% dividend, then it will almost always have non qualified dividends in it.
@@DividendGrowthInvesting thanks for answering me! I kind of figured that was the case. I think it will just be better, in my personal situation, to go about all in on non-qualified and keep the qualified investments at such a level that their income will cover my taxes.
In my TD Ameritrade accounts, SCHD dividend is listed as Ordinary Dividend. Does that mean it's not qualified?
This is next level FIRE /tax planning! Strategic yet simple.
I always used to think taxes were intimidating.. Knowledge is power!
I keep my REITS and other capital growth stocks in my Roth IRA /PCRA.I only have MLP's in my regular brokerage account.Not much for ETF's but to each there own.Happy investing/stacking.
Isn’t the 0% capital gains threshold scheduled to expire in a few years? Don’t count on that continuing in any event.
Changes is always the only constant
@@DividendGrowthInvesting very true. In the 1980’s, there was no such thing as qualified dividends and capital gains preferential treatment. The brackets were 15% & 28%. The tax code should remain the same at least for two more years. After 2025, who knows what it will be? Since 2002, the tax code has favored investors over workers.
Thanks for grabbing that tax rate chart to all the different countries. I was going to grab some TD but why take on that extra tax burden. I appreciate the information.
So does it matter when you buy schd in a brokerage account? When would be the best time if it does matter?
Do you have mutual fund for dividends that you invest in? Asking cause fidelity only lets me automate investing in mutual funds.
They don't let you automate into passive index funds??
@@DividendGrowthInvestingI think they allow automatic investing in index funds but not etf; could be totally mistaken. Just started on fidelity 401k
Thank you! These are actually the only two investments in my IRA.
great place to hold them to avoid taxes all together!
what category would pensions fall under for income on the calculator you use in the video? Thanks
SCHD yield is too low.
Is there any place to search 1099 div forms to decide on an investment?
I think lot of us had these questions in mind, thank you so much, btw I eagerly wait for your video all week
Hey Naveed! So glad you are enjoying the channel. Taxes can be fun if you take the time to understand them. Sometimes its not always about making more, but rather how you can keep more.
I own 6000 shares of jepi, all my dividends go into a settlement fund with Vanguard, which is over 3k monthly. If I take anything out I pay 25% in taxes.
i have 3200 shares of tesly and will make 3400 next week. its only like 52000 worth of tsly
This is such a great video! Thank you so much for this information and I will definitely check out your other videos
Excellent detail and right on time for me. Thank you!
Glad it was helpful!
Thank you sir! Brilliant! Cheers mates!!
im new to investing. if I DRIP my dividends, do I get taxed on them? I don't plan on taking any of the money out for another 30 years.
In a faxed advatanged no. In a taxable brokerage whether you take out or reinvest you pay taxes
Wow this is awesome going to invest in more non qualified dividends when I get closer to fire if things stay the same
exactly!!! Fingers crossed it stays the same.. but if not, you will be able to structure your portfolio for the time that we live in.
@@DividendGrowthInvesting yeah I only invest in qualified dividends right maybe in like 7 to 10 years I will look tot jepi
Are all dividends treated the same in an IRA?