just_hatched
Recycles dryer sheets
- Joined
- Sep 12, 2005
- Messages
- 97
I'm slowing building up my Vanguard index fund portfolio through regular contributions and currently I'm making a decent salary.
Given the current captial gains tax rates, would I be able to keep more of my gains (after taxes) if I hold them for a long time and then start selling some if my income were to drop for some reason (say ER for example)?
I don't plan to sell yet, but if I did sell some today, then I'd probably have to pay 15% in LT capital gains tax.
But if I got laid off tomorrow (hopefully not), and I sold some shares for gas money, then I would only pay 5% in LT capital gains tax?
But it's also possible that the capital gains tax rates will be higher when I retire, say 20 years from now.
A semi-related question also - will Vanguard keep records for calculating a cost basis for those gains over the course of decades? I have paper year-end statements in my files, but I'm worried just in case my other electronic copies somehow get erased, etc.
Do they help with cost basis calculations for taxes? Is it harder to calculate cost basis if you have your dividends re-invested each quarter?
Thanks.
Given the current captial gains tax rates, would I be able to keep more of my gains (after taxes) if I hold them for a long time and then start selling some if my income were to drop for some reason (say ER for example)?
I don't plan to sell yet, but if I did sell some today, then I'd probably have to pay 15% in LT capital gains tax.
But if I got laid off tomorrow (hopefully not), and I sold some shares for gas money, then I would only pay 5% in LT capital gains tax?
But it's also possible that the capital gains tax rates will be higher when I retire, say 20 years from now.
A semi-related question also - will Vanguard keep records for calculating a cost basis for those gains over the course of decades? I have paper year-end statements in my files, but I'm worried just in case my other electronic copies somehow get erased, etc.
Do they help with cost basis calculations for taxes? Is it harder to calculate cost basis if you have your dividends re-invested each quarter?
Thanks.