I'm not in any high tax bracket as my wife and I are both on Social
Security, I'm only pulling a small amount out of my 401k
I have enough in there that if I need to withdraw $10k or so, it won't
make much of an impact .
On Wednesday, February 3, 2016 at 2:19:36 PM UTC-5, philo wrote:
It's not about a "high" tax bracket, it's about any given tax bracket. This
is rough, but it explains the issue I am talking about.
Let's say your annual AGI is $5K lower than the top of the 15% bracket.
Right now, all of your income is taxed at 15%. Now let's say that you
estimate that you will need a roof in 3 years to the tune of $15K.
(To keep the numbers simple, let's ignore the fact that you need to
take out more than $15K to *net* $15K after taxes by assuming you
have other cash with which to pay the taxes.)
If you withdraw that $15K out in one year, $5K is going to be taxed in
the 15% bracket, but the remaining $10K is going to be taxed at 25%.
However, if you withdraw $5K extra per year for the next 3 years, the
entire $15K will be taxed at 15% because you didn't bump yourself into
a higher bracket in any given year. In the long run, you'll save yourself
$1000 in taxes.
Maybe not an impact on your "savings" but it may cost you more in taxes.
On Wednesday, February 3, 2016 at 5:10:42 PM UTC-5, Tekkie® wrote:
As I said in an earlier post, you don't have to leave the distributions in
cash, you can reinvest the net amount in the same investments that were use
in the qualified account.
Obviously there will be less to invest and the growth will be taxed in a
different manner (capital gains and dividends instead of income) so the
strategy should be considered with careful planning to determine if it
On Wednesday, February 3, 2016 at 5:24:12 PM UTC-5, Tony Hwang wrote:
What the heck are you talking about?
All I was discussing was a tax planning strategy that could be employed
by anyone that has money in a qualified account. There was no personal
information shared or asked for and there was no "richer or smarter than"
implied or intended.
What's got your panties in a wad?
On 02/03/2016 07:22 PM, Tony Hwang wrote:
You are correct, I have no personal banker, accountant or financial
advisor. (Did hire a lawyer to do my will though)
A few times advisors have called on me and since I have been investing
in the stock market for over 50 years and have been quite successful , I
was the one who ended up giving them advice.
Started when I was 13 years old and my dad of course invested for me.
Mentioned this before somewhere but will repeat:
Choosing a good stock is not that difficult, the hard part is having the
years of experience to know you can ride something out. VIZ: A cast iron
No matter what, the stock market has it's ups and downs and one must
learn /not/ to panic and sell when things drop.
I started my daughter in the same tradition and she started calling the
shots at even an earlier age then me. As a result the few thousand
dollars worth of her childhood birthday and Christmas money grew
sufficiently to put herself through college and graduate debt free.
I gave her a little help with car repairs etc but she has been damn
On 02/03/2016 09:15 PM, Snuffy "Hub Cap" McKinney wrote:
The only other time I hired a lawyer was when I got divorced.
since it was what they say a "friendly" divorce the fee was just $175
I figured it was easier just to agree with her.
A friend of mine spent $5000 on a lawyer and ended up having to give
everything to his ex-wife anyway
He was from China and needed to get married so he would not get deported.
He eventually found the right woman and things for him have been great.
A US citizen now and the head of engineering at a major firm
marry someone. There was a guy in my office when I was working.
He divorced 3 times and he said first time is harder but it gets
easier afterward. I now understand why he never owned a house or
any valuable asset.
My initial investment was $200. Had it been even as much as $2000 though
I very well might have been a millionaire now.
A million dollars today does not make one rich.
OTOH: I do have a rich life... my friends
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