Don’t Ignore Non-Retirement Accounts: Tax Tips and Features for Taxable Brokerage Accounts
ฝัง
- เผยแพร่เมื่อ 2 ก.ค. 2024
- Taxable brokerage accounts can be surprisingly tax-friendly. We’ll cover tax-savvy strategies as well as the basics of how these accounts work in this video.
These non-retirement investing accounts allow you to put in as much as you want and withdraw money whenever you please.
⚠️ Please see important information below!
Related Content:
Which Accounts to Spend From First in Retirement: • Which Money to Spend F...
How a Social Security Bridge Works: • Social Security Bridge...
Which Accounts to Spend From First: • Which Money to Spend F...
Full article: www.approachfp.com/non-retire...
🌞 Subscribe to this channel (it's free): / @approachfinancial
Yes, earnings in the account get taxed each year, but sometimes you enjoy favorable tax rates. You might even pay zero percent, in some cases.
Taxable accounts are worth a look if you want to invest money outside of a retirement account like an IRA or 401(k) plan. Perhaps you’ve already maxed out those accounts and you want to save more each month. Or maybe you have a lump sum of cash, and you’d like to try to grow the funds over the long term.
Get free retirement planning resources: approachfp.com/2-downloads/
🔑 9 Keys to Retirement Planning
🐢 6 Safest Investments
With these accounts, you can use a variety of investments. You can keep things relatively safe if you want, favoring things like money market funds or CDs (possibly with government backing, but check for details before you assume anything). Or, you can pursue long-term growth-while accepting the risk of losses-by investing in a portfolio of stocks, bonds, or other instruments.
Ultimately, these accounts provide flexibility for non-qualified money.
Don’t forget strategies that might make these accounts more efficient, including:
✅ Tax gain harvesting
✅ Tax loss harvesting
✅ Choosing shares that have high basis (when appropriate)
✅ Asset location
✅ Keeping turnover low
✅ Donating or giving appreciated assets
✅ And more
Learn about working with me at approachfp.com/
✔️ Flat-fee options
✔️ One-time projects available
✔️ Investment advice (optional)
Justin Pritchard, CFP® is a fee-only fiduciary advisor who can work with clients in Colorado and most other states.
CHAPTERS:
00:00 Often Ignored, But Valuable
00:44 Basics and Features
04:05 Income & Gains Taxed Annually
09:14 Step-Up in Cost Basis at Death
11:02 Tax-Smart Strategies for Taxable Brokerage Accounts
IMPORTANT:
Check with the IRS for current numbers, as income levels and other numbers change periodically. This information may be out of date. It's impossible to cover everything you need to know in a video like this. The only thing that's certain is that you need more information than this. Always consult with a CPA before making decisions or filing a tax return. Always verify with a CPA or your tax expert before making decisions or filing a return. Do additional research-even if you choose not to take any action-the impact could be significant. This information may have errors, may be outdated or incomplete, or may not be applicable to your situation. You can lose money investing. There may be additional risks, opportunities, and requirements not discussed here. I don't know everything about everything, and sometimes I make mistakes.
Any referenced returns or results are merely assumptions for educational or informational purposes and should not be construed as actual or hypothetical performance figures in connection with the firm’s investment advisory services. Some visuals shown are from organizations that are not affiliated with Approach Financial, Inc. There is no prediction of future results, and anything is possible. You can lose money investing, and your investments might never recover by the time you need money.
This is general information and entertainment, and is not created with any knowledge of your circumstances. As a result, you need to speak with your own tax, legal, and financial professional who is familiar with your details. This video is not a substitute for individualized, personal advice. Please verify with your plan administrator when employer plans are involved. This information may have errors or omissions, may be outdated, or may not be applicable to your situation. Investments are not bank guaranteed and may lose money. Opinions expressed are as of the date of the recording and are subject to change. “Likes” should not be considered a positive reflection of the investment advisory services offered by Approach Financial, Inc. The Comments section contains opinions that are not the opinions of Approach Financial, Inc., and you should view all comments with skepticism. Approach Financial, Inc. is registered as an investment adviser in the state of Colorado and is licensed to do business in any state where registered or otherwise exempt from registration.
now I have a brokerage account in addition to my 401k, ROTH IRA and HSA. I consider that brokerage an emergency fund and if (God willing) I don't need it, I will use it as a bridge to another bridge (401k ) that then can push the taking of the Social security to 70. I specifically wanted that brokerage account to get as high as i could cover expenses for a limited amount of years (calculating those expenses, of course)
EVERYTHING you said is how I handle my Roth, rollover and taxable accounts. Thank you for accrediting my methods. Look forward to hearing more.
Great video. Will watch again. Age 60 on Obamacare so the Taxable account is a HUGE asset. Invested in CDs and growth etfs. Pay interest on CDs but 0 tax on capital gains on etfs. Great tool
Keep cds in 401k, shares and etfs in taxable
Good stuff, thank you!
love love love your videos. REALLY!
T bills are the best especially those in high tax states like California
Wait wait,,, at 12:59 you show that she took out $56,859 out of brokerage. After standard deduction of $14m600 you have a leftover of $42,259. WOULDN'T THAT be taxed ??? Because according to CHAT GPT you should incur a tax of $4,800 on that remaining $42,000 . Is chat GPT wrong???
Not an expert, but my understanding is: Money taken out of a "regular" brokerage account is not income. The original money (the basis) is yours, but you do have to pay tax on any capital gains at the appropriate capital gains rate. The rest (the basis) is money that was already yours and was taxed before it went into the brokerage (same as money taxed before it goes into a savings account or CD is not taxed when you take it out.)
yes, chat GPT is wrong. (And that is the general assumption you should make if you ask it for anything more than a general idea.)
The 56,849 was long-term capital gain. There was no ordinary income. The 42,259 left after the std deduction is still lt cg. That amount falls entirely in the 0% tax bracket because it is lt cg and not ordinary income.
Yes, ChatGPT can be wrong. Here's a video on how ChatGPT performs with retirement planning questions: th-cam.com/video/2z8WX0Fg054/w-d-xo.html
The (potentially) taxable event is the transaction to sell. But if you happen to qualify for 0% long-term capital gains (LTCG) rates, as is the case in the first example, there may not be any tax due. In that case, the sales proceeds are free and clear, but any subsequent earnings on that money could generate taxable income. Sylvan_dB covers the reasoning, and you can research tax gain harvesting for more details.
@@ApproachFinancial you are the best
@@momhouser that is what I though....