Originally Posted by DanTien
Now, I'm worried for Nords.*
Well, clearly I'm better at plugging through worksheets than I am at understanding their theory. Thanks for pointing out my "conceptual error", Martha, and I apologize if I got anyone else salivating about something that turned to be too good to be true. Luckily I didn't have to understand what I was doing to plug through the worksheet and put the numbers into TurboTax. They calculated the results correctly even through I was blissfully ignorant.
Getting back to Whitestick's original point:
- At a time in our lives when spouse & I have very low earned income, I wouldn't hesitate to take huge cap gains to reallocate a portfolio. I'd be even more motivated to do so if I could pay cap gains tax (at 5% & 15%) instead of paying full earned-income tax rates on RMDs.
- If I ended up holding an undiversified hairball of stocks, I'd have two choices:
-- spend my time getting to know them as intimately as Warren Buffett, and spend a considerable portion of my life managing them, or
-- immediately diversify risk for which I am not being adequately compensated.