Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Did the Bush tax cuts change anyone's FIRE plans?
Old 07-08-2008, 05:44 PM   #1
Thinks s/he gets paid by the post
jIMOh's Avatar
Join Date: Apr 2007
Location: Milford, OH
Posts: 2,085
Did the Bush tax cuts change anyone's FIRE plans?

Did the Bush tax cuts change anyone's FIRE plans?


dividends taxed at lower rates changed savings strategy


could retire on less than originally planned


the repeal of the tax cuts could delay retirement a year or two (or three...)

or something else not listed...

Light travels faster than sound. That is why some people appear bright until you hear them speak. One person's stupidity is another person's job security.
jIMOh is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 07-08-2008, 05:59 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
clifp's Avatar
Join Date: Oct 2006
Posts: 7,427
The lower of dividends taxed coupled with the lower capital gains rate dramatically changed my portfolio composition. I shifted from growth orient stocks/funds to dividend paying individual stocks.

When ER in 99, my plan was to take a few years off than rejoin the work force in a lower paying, more fun job. The bear market of 2000-2002 increased my likehood of doing this. However the tax cut was a roughly a 10% increase in the value of my future income so it decreased the need to unretire.

If the bear market continues for another few years and Obama raising taxes on dividends/cap gains, I'd consider getting out of retirement.

clifp is offline   Reply With Quote
Old 07-08-2008, 08:38 PM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
NW-Bound's Avatar
Join Date: Jul 2008
Posts: 15,927
I did remember trying to capitalize on the lower dividend tax rate, and picked up some utility companies. I figured people would be willing to pay more for them, so I bought for cap gains, not just dividend, though that helped too. I held them for 3-4 years, and sold some for some profits when they appeared to top out, and still have some.

In the final analysis, during that period lots of stocks were going up, so I could have bought something else and had the same gains.
NW-Bound is online now   Reply With Quote
Old 07-08-2008, 09:27 PM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 13,019
No, but the capital gains tax rate went down from 28% to 20% under Clinton and that helped me BIG time, because it meant I could sell less company stock to reach my retirement goals. I really wasn't that eager to take profits on my stock with a 28% tax rate, but somehow the 20% rate made it much more palatable.

Then, after retiring, Bush provided more icing on the cake - 18%, then in a TOTAL surprise, 15% cap gains rates with the dividend tax cut. I really didn't expect that.

So, I have taken advantage.

And now it looks like things will reset to the higher rates - at least to 20%.

audreyh1 is online now   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
Change In Plans, Need Advice potto0213 FIRE and Money 7 06-28-2008 03:34 PM
Any change in plans with current economy? 52andout FIRE and Money 14 10-17-2007 07:34 AM
tax cuts are harmful bosco Other topics 19 12-29-2006 01:53 PM
Change in ER plans dm Other topics 2 02-10-2005 01:15 PM
Investment tax cuts in the new tax bill Telly FIRE and Money 1 05-23-2003 01:42 PM


All times are GMT -6. The time now is 06:30 PM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.