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Old 07-29-2011, 05:49 AM   #21
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Safe Harbour, it is relatively easy to get cash out of tax-deferred when one has significant assets in non-tax-deferred that are not cash.

One does this by a double-exchange as described in this link: Placing Cash Needs in a Tax-Advantaged Account - Bogleheads

It does not matter if stocks have gone down, sideways, or up. One does not end up "selling low" when converting their stocks in their taxable accounts into cash. The reason is that they buy the same stocks in their tax-advantaged accounts with the cash found there.

Unfortunately, some folks do not understand what a double exchange is, so then end up paying more taxes needlessly.
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Old 07-29-2011, 10:47 AM   #22
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Neat photo. Why is real estate so tax inefficient (and should be in a tax free account, apparently)?
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Old 07-29-2011, 11:19 AM   #23
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Quote:
Originally Posted by arebelspy View Post
Neat photo. Why is real estate so tax inefficient (and should be in a tax free account, apparently)?
Assuming we are talking about REIT's it is because distributions come out as non-qualified dividends. Real Estate Investment Trust - Bogleheads

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Old 07-29-2011, 11:27 AM   #24
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Thanks LOL! What a great answer. Solves my problem.
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Old 07-29-2011, 06:47 PM   #25
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Originally Posted by DblDoc

Assuming we are talking about REIT's it is because distributions come out as non-qualified dividends. Real Estate Investment Trust - Bogleheads

DD
The info graphic shows real estate and REITs. I'd think, sue to related deductions, real estate itself could be tax advantageous. But this picture disagrees.
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