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i will gladly earn money in a taxable account too besides an ira and pay the taxes ..
many types of assets should be in a taxable account . tying up valuable space in a retirement account with fixed income at these levels is a waste of space
Yay for you. All of my money goes into retirement (tax deferred) accounts. Your income is much higher than mine, and therefore you have a much different situation.
I am not retired yet. You are. Your wasted space is not my wasted space.
Nobody can give tax advice on here, but I'd heard for most people they can write-off to the extent of their gains plus $3K of loss. You'd need to check with your accountant for your situation.
That’s how I do my taxes. Since I can’t give tax advice it’s the best I can answer the question. Thanks
Yay for you. All of my money goes into retirement (tax deferred) accounts. Your income is much higher than mine, and therefore you have a much different situation.
I am not retired yet. You are. Your wasted space is not my wasted space.
Not about me or what I do ...it just boils down to what is good recommended planning tactics regardless of amounts .
As kitces points out
Given that recent research has shown effective asset location strategies can add 20-50+ basis points of “free” value to annual returns, providing guidance on asset location is becoming increasingly popular.
Yet unfortunately, asset location strategies are often dominated by myths and misperceptions! Ultimately, the reality is that good asset location decisions actually should be influenced by both the tax efficiency of investments and also their expected returns, which makes the analysis somewhat more complex… but also reveals why in today’s environment most bonds actually should NOT go into tax-deferred accounts!
While it isn't a cap gains issue per se, for us the biggest threat is the scheduled reduction in the gift tax exclusion in a few years coupled with the president-elect threatening to reduce it right away. Gotta give away money this year.
Not about me or what I do ...it just boils down to what is good recommended planning tactics regardless of amounts .
As kitces points out
Given that recent research has shown effective asset location strategies can add 20-50+ basis points of “free” value to annual returns, providing guidance on asset location is becoming increasingly popular.
Yet unfortunately, asset location strategies are often dominated by myths and misperceptions! Ultimately, the reality is that good asset location decisions actually should be influenced by both the tax efficiency of investments and also their expected returns, which makes the analysis somewhat more complex… but also reveals why in today’s environment most bonds actually should NOT go into tax-deferred accounts!
While it isn't a cap gains issue per se, for us the biggest threat is the scheduled reduction in the gift tax exclusion in a few years coupled with the president-elect threatening to reduce it right away. Gotta give away money this year.
That's some fast dancing to do partner.
Speaking of...you know you're my favorite poster right?
Well, I don't buy any bonds. So not an issue for me.
it applies to any bond funds as well just so no one is confused and thinks it applies to only individual bonds.
old school thinking was that fixed income of any sort should go in to the retirement accounts but that thinking turned out out to be false when researchers looked under the hood based on the rates that are so much lower.
tax deferred or tax advantaged space is far to valuable to be taken up with most fixed income investments .
the exception being something like TLT which can produce gains that exceed equities in some years .
it may not apply to you if you have no bond funds but it certainly will apply to many here since many still run on old school thinking .
Last edited by mathjak107; 11-17-2020 at 03:05 AM..
Already done it. Sold winners in January and again in Sept. Had a couple of small losers that I sold. No RMDs this year so I thought it a good time to recognize $100K or so in cap gains.
Be careful of medicare premium increases if you are on it
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