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Old 12-02-2012, 10:37 PM   #41
Recycles dryer sheets
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Join Date: Dec 2007
Posts: 291
I've been selling VYM, Vanguard High Dividend ETF and buying VTI, Vanguard total stock market...

I hate to sell the VYM but the fact is taxes on dividends are going up no matter what The VTI is just buy and hold index investing, VYM and gun maker stocks have been good to me....

Im only 27% in stocks though...

I accelerated income and taxes this year and moved out of the corrupt bankrupt Chicago suburbs to South Dakota and paid cash for "The Compound"

I've been looking into getting into cattle ranching on a small scale here and possibly buying more grass land if it works out...

$12.00 for a ribeye steak is ridiculous, time to "Cowboy Up!!!"

FIRED at 39 in 2008...
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Old 12-03-2012, 05:00 AM   #42
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Join Date: Sep 2012
Posts: 1,240
I think it was John Templeton who originally said, the most dangerous words in investing are "this time it's different". I agree the "cliff" is media fodder.
But the larger issue seems real, the debt crisis.
After reading Reinhart & Rogoff's book, which uses those dangerous words in its title, this current time we are living in, the wake of the popping of the biggest debt bubble the world has ever seen, really is different. Not different from debt crises in general, but different from our lifetimes of direct experiences here in the USA.

If I just knew what to do about I pretty much keep to my "normal" allocations, holding a bit more cash, added to real estate (bought my retirement home-not really an investment asset), searching for non-equity and non-bond correlated investments, pondering whether I should aggressively reduce stocks to lock in today's low long term cap gain rate (I've always been loath to sell winners and pay the taxes), and of course, trying to figure out why I'm confused about dryer sheets.

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Old 12-03-2012, 07:27 AM   #43
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Location: Vermont & Sarasota, FL
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Originally Posted by bizlady View Post
Actually. I really did mean 0 % tax on the sale. We are in a unique situation for a couple years with low taxable income until we start tapping retirement funds. While we do have some carryover, those in the 10 and 15% tax bracket pay nothing on LT capital gains throughout this year yet. Our limited income, combined with paying for medical insurance gets us to these brackets.

No Capital Gains Taxes Due For Some Investors |
Same situation for me.

While article indicates that short-term gains remain at ordinary rates, I'm finding that I can still harvest a significant amount of short term gains at 0% tax because my exemptions and deductions exceed my short term gains and I had little other ordinary income. (Most of my income is qualified dividends, which is also subject to 0% tax as long as I stay in the 15% bracket).
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Old 12-03-2012, 08:51 AM   #44
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I retired in May and have been procrastinating on adjusting my AA. I am adjusting from 80/20 to 50/50. I was heavy in stocks but they only represented about 40 % of my net worth. I think now is a good time to make the changes. The volatility over the past 12 years wasn't worth the 2% returns. Lol
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Old 12-03-2012, 12:33 PM   #45
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Only about 62% of my 2012 income will be possibly taxable at the federal level. This is because the other 38% of the income is either qualified dividends, long-term cap gains, or muni bond fund interest, none of which is subject to federal income taxes (I am in the 15% tax bracket so the QD and LTCG are taxed at 0%). And that is before I subtract the personal exemption and standard deduction from the original, fully taxable income. After you take that into account, just over half of the 62% ends up getting taxed.

No change for me with the so-called fiscal cliff getting closer and closer.

Retired in late 2008 at age 45. Cashed in company stock, bought a lot of shares in a big bond fund and am living nicely off its dividends. IRA, SS, and a pension await me at age 60 and later. No kids, no debts.

"I want my money working for me instead of me working for my money!"
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