Lower Your Taxes in Retirement with Asset LOCATION
HTML-код
- Опубликовано: 2 май 2024
- Every retiree is wondering how they can minimize their taxes, but far to often I see this tactic overlooked. Everyone is trying to do fancy Roth conversion and gifting strategies, but they are neglecting the easy strategies right in front of them... ASSET LOCATION!
Asset location is aligning the asset type (stock, bond, cash) with the account type based on taxability. Doing this correctly can save you thousands of dollars in taxes every year.
Topics discussed:
- What is asset location?
- What does a portfolio look like that ISN'T asset located properly?
- What does a portfolio look like that does have asset location?
- Long-term capital gains vs short-term capital gains
- Qualified vs Non-Qualified dividends
- Using your Roth IRA to its full potential
---------------------------
Website: www.rivertreewealth.com
LinkedIn: / jacobduke
Jacob Duke, CFP, MBA is the founder of Rivertree Wealth and the host of the Retirement Answers podcast.
👉 Do you have your custom retirement strategy? If not, get started today: www.rivertreewealth.com/get-s...
🔔 Subscribe to the channel and press the bell icon so you never miss a video!
DISCLAIMER: This video is not meant to be taken a tax, legal, or investment advice. All content is for educational purposes only.
Hi Jacob, That was a fantastic video on the topic of asset location.. The visuals are really helpful. Thanks very much!
Great! Glad it was helpful.
If just focus into tax advantages then the 3-bucket is sound reasonable. However at FRA and no longer contribute to Traditional IRA (for tax deferral) as you suggested only T-Bills/Bonds then this bucket will not growing... if stocks in this bucket then capital gains with no Tax (until withdraws) ! and same time this bucket will continue growing with market ...
Excellent talk on allocation, Jacob
You make the complicated tasks 🤔 for me on allocation make sense 😃. Thanks for educating us BABY BOOMERS
You’re welcome! Glad it’s helpful.
Recommend a talk on what bucket to pay Roth conversion with . Is it the taxable /brokerage accounts or CD/Bank and what time of year to do . What if one wants to stay within the 22 % or 24% tax bracket yearly before the 2026 Tax bracket revert to higher tax brackets ??????🤔🤔🤔🤔🤔🤔
Thank you, Jacob! Important info, for sure!
You bet!
Thanks Jacob for a very informative video with a lot of helpful information!
My pleasure!
Thank you Jacob for the insight. This brings one question to mind. T-bill income is tax free at the state level. Would putting T-bills into a Traditional IRA result in the interest being taxed by the state at withdrawal time? Thank you Jacob and best of luck with your enterprise!
Anything withdrawn from a tax-deferred account is taxed as ordinary income at your Federal and state tax rates.
Would your location strategy change for early (pre 59.5) retirement planning, based on access to funds as well as longevity?
Overall strategy shouldn't change... but... to achieve a high stock to bond allocation you obviously may need to place stock assets in your tax deferred account.
Not sure I agree with your recommendation about having dividend stocks in your taxable account. Those stocks should go in your Roth account. Growth stocks should go into your taxable account just incase they tank so you can take a capital loss on them. I got burned by a few growth stocks in my Roth so I'm only putting index funds and dividend payers in there now.
Excellent video to start... a follow up on what types of stock funds should be placed in your Roth versus your taxable account would be great. As this viewer points out... higher yield assets probably belong in Roth with lower yield assets belonging in taxable. Also addressing what stock assets are best placed in tax deferred accounts if that is needed to achieve overall stock to bond targets.