Looking for some general advice to minimize taxes I will owe on 5-10k money withdrawn from a taxable account. I need to make a withdrawal and my two choices are both American funds. Growth fund of America AGTHX (growth stocks) which has been doing very well and has a higher value now than the cost basis or American High Income Trust AHITX which is high yield bonds and pays a decent dividend but has a lower value than the cost basis now. (Would this mean I would take a loss?)
My broker advised the funds before I knew about the "don't put bonds in taxable" advice so if I use the bond money that will reduce my holding which may be good long term.
Currently I am trying to figure out how my withdrawals will be taxed as I am trying to stay in the 15 percent tax bracket to avoid taxes on capital gains. I am right on the edge and will need to make further adjustments in my deferred income if this withdrawal adds a significant tax burden.
Any advice or information is appreciated. I wanted some input before I call and tell her I need to make a withdrawal as I have a feeling she won't be overly conscious of the taxes since the bonds are in that taxable account instead of a Roth IRA to begin with.
The good news is the bulk of my retirement portfolio is in Vanguard[emoji3] and with deferred compensation at work.
Thanks!
My broker advised the funds before I knew about the "don't put bonds in taxable" advice so if I use the bond money that will reduce my holding which may be good long term.
Currently I am trying to figure out how my withdrawals will be taxed as I am trying to stay in the 15 percent tax bracket to avoid taxes on capital gains. I am right on the edge and will need to make further adjustments in my deferred income if this withdrawal adds a significant tax burden.
Any advice or information is appreciated. I wanted some input before I call and tell her I need to make a withdrawal as I have a feeling she won't be overly conscious of the taxes since the bonds are in that taxable account instead of a Roth IRA to begin with.
The good news is the bulk of my retirement portfolio is in Vanguard[emoji3] and with deferred compensation at work.
Thanks!