Good info here! Would love to hear more about how to optimize this account, such as the types of assets that would be best/most efficient. Also, any other tips you may have regarding best practices. Using this as a bridge myself for early retirement.
Through dumb luck, most of my assets are in taxable accounts. But it allowed me to retire at 55 and have immediate access to most of my money, if needed.
Appreciate the re-branding of this type of Brokerage accounts / non-retirement / "RFA" strategies. Planning on retiring this year @ 60 with currently several accounts: 403b; 457; Roth and Joint Brokerage account, plus wife's 401K. Based on several sources including your straight forward easy to understand retirement strategies, plan to hit the Roth conversion sweet spot after retirement and before SS kicks in; it's clear I need some professional help with taking advantage of the vast taxable savings before moving / converting my current accounts. What specific background and or certification should I look for in Southern California for a tax professional?
Good advice here, same as I have received. Stopped putting money in 403b and put that money and more into a brokerage account along with Roth. Planning on retiring at age 56. Will use teacher pension and brokerage account till RMD’s on my 403b kick in.
Under the vein of charitable giving I have a question. We do tax loss harvesting, which helps reduce our taxes owed on the growth each year. How could we (or can we) combine tax loss harvesting and charitable giving during the tax year, to reduce our taxes to zero? Our brokerage account is our largest holding and the taxes each year are not fun. I know it is a good problem to have, but any reduction beyond what I am doing would be a blessing.
I’m in my early 30s, do you think a taxable brokerage is a good place to put my excess money (after my 6 month emergency fund) for future but shorter term goals? Aka house or future car that I am not planning for yet at this moment?
I have been using these tax strategies for years. If you fill up the 10% and 12% brackets, and take the rest of your income from qualified dividends, a single retiree will pay 15% for income from from $60K to $200K, until you hit NII. That means you will pay about $26K Federal tax on an income of $200K. Even if you had another $100K in qualified dividends, you would still only pay another $18K or so, so a $44K tax on an income of $300K. Of course, you will pay a big fat IRMAA, but you can't win 'em all. At these levels, Roth conversions are not really practical.
Good info here! Would love to hear more about how to optimize this account, such as the types of assets that would be best/most efficient. Also, any other tips you may have regarding best practices. Using this as a bridge myself for early retirement.
Through dumb luck, most of my assets are in taxable accounts. But it allowed me to retire at 55 and have immediate access to most of my money, if needed.
Seems like you have a bit more “freedom” to use your savings when you need to. 🙂
Appreciate the re-branding of this type of Brokerage accounts / non-retirement / "RFA" strategies. Planning on retiring this year @ 60 with currently several accounts: 403b; 457; Roth and Joint Brokerage account, plus wife's 401K. Based on several sources including your straight forward easy to understand retirement strategies, plan to hit the Roth conversion sweet spot after retirement and before SS kicks in; it's clear I need some professional help with taking advantage of the vast taxable savings before moving / converting my current accounts. What specific background and or certification should I look for in Southern California for a tax professional?
Awesome video!!! I like the way you think!! Thanks for sharing!! Svend
Good advice here, same as I have received.
Stopped putting money in 403b and put that money and more into a brokerage account along with Roth.
Planning on retiring at age 56. Will use teacher pension and brokerage account till RMD’s on my 403b kick in.
Thanks for sharing!
Under the vein of charitable giving I have a question. We do tax loss harvesting, which helps reduce our taxes owed on the growth each year. How could we (or can we) combine tax loss harvesting and charitable giving during the tax year, to reduce our taxes to zero? Our brokerage account is our largest holding and the taxes each year are not fun. I know it is a good problem to have, but any reduction beyond what I am doing would be a blessing.
Very interesting investment account that I was not aware of. Thanks!!
I’m in my early 30s, do you think a taxable brokerage is a good place to put my excess money (after my 6 month emergency fund) for future but shorter term goals? Aka house or future car that I am not planning for yet at this moment?
So instead of giving the government money in form of a tax we can do a charitable giving? I like that!
Wouldn’t you still end up losing more money by donating?
I have been using these tax strategies for years. If you fill up the 10% and 12% brackets, and take the rest of your income from qualified dividends, a single retiree will pay 15% for income from from $60K to $200K, until you hit NII. That means you will pay about $26K Federal tax on an income of $200K. Even if you had another $100K in qualified dividends, you would still only pay another $18K or so, so a $44K tax on an income of $300K. Of course, you will pay a big fat IRMAA, but you can't win 'em all.
At these levels, Roth conversions are not really practical.
Do you put long term investments in taxable accounts?
Looking for where to begin putting in some funds that will aid me after retirement. Saving up isn't giving anything in return
Could I move the money from a traditional IRA to an HSA after I stop working but before I am eligible for medicare?
None of this applies to California, pretty much.
Do i have to wait a year to tax loss harvest ?
Nothing new. It is called a non-retirement account.
Right. It’s not new, but not everyone is using it to its fullest potential. Hopefully the video shares some ideas to help others.