 |
How to get more tax protection?
04-17-2007, 10:20 AM
|
#1
|
|
Recycles dryer sheets
Join Date: Jul 2005
Posts: 147
|
How to get more tax protection?
OK,
So after all my expenses, I still have a couple thousand dollars left every month. I already max out my 401K and my Roth IRA contributions. I was putting my money on several ETF's, but the dividends are adding up and increasing my taxable income. Are there any other investments that I should consider to minimize my tax exposure? I am aware of government bonds, but the return on those are pretty lame right now. Anything else that I am missing? Please advise.
|
|
|
 |
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 Early-Retirement.org 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!
|
Re: How to get more tax protection?
|
04-17-2007, 10:28 AM
|
#2
|
|
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Mar 2003
Posts: 18,085
|
Re: How to get more tax protection?
Don't let the tax tail wag the investment dog. Maximize after-tax risk-adjusted return, don't minimize taxes.
Or there is always Beev3r Cheeze futures. The capital losses they generate will nicely offset your other taxable income. 
__________________
"All animals are equal, but some animals are more equal than others."
- George Orwell
Ezekiel 23:20
|
|
|
|
Re: How to get more tax protection?
|
04-17-2007, 11:09 AM
|
#3
|
|
Thinks s/he gets paid by the post
Join Date: Oct 2004
Posts: 1,719
|
Re: How to get more tax protection?
What about tax-free state/municipal notes/bonds? There are some that renew at periodic intervals and throw off ~4% tax free.
__________________
He had one of those rare smiles with a quality of eternal reassurance in it . . . It faced, or seemed to face, the whole external world for an instant and then concentrated on you with an irresistible prejudice in your favor. -- The Great Gatsby, F. Scott Fitzgerald
|
|
|
|
Re: How to get more tax protection?
|
04-17-2007, 02:56 PM
|
#4
|
|
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jun 2005
Posts: 10,252
|
Re: How to get more tax protection?
 Quote:
|
Originally Posted by camberiu
...
I was putting my money on several ETF's, but the dividends are adding up and increasing my taxable income. Are there any other investments that I should consider to minimize my tax exposure?
|
We've got the same problem. I am selling my Dodge&Cox balanced which I bought before they closed. I intend to cut back to the minimum allowed for that fund in case I want to get back in the future. All my fixed income assets (except emergency fund) will then be in my tax-deferred accounts. But those ETFs like SPY, MDY, IWM, EEM, and PID do put out a chunk of dividends each year (no cap gains distributions though). The dividends may thwart my plan to convert tIRA assets to Roth IRAs tax-free in the future.
Perhaps a tax-managed Vanguard fund is in order? I will have to look into that.
|
|
|
|
Re: How to get more tax protection?
|
04-17-2007, 06:04 PM
|
#5
|
|
Full time employment: Posting here.
Join Date: Dec 2006
Posts: 509
|
Re: How to get more tax protection?
Quote:
|
Originally Posted by LOL!
All my fixed income assets (except emergency fund) will then be in my tax-deferred accounts.
|
Any recommendations for fixed income emergency fund stuff? Right now mine is in Fidelity Tax Free MM...
|
|
|
|
Re: How to get more tax protection?
|
04-17-2007, 06:10 PM
|
#6
|
|
Full time employment: Posting here.
Join Date: Mar 2007
Posts: 577
|
Re: How to get more tax protection?
What kind of Insurance do you have? I'm knocking my AGI down $5,150 bucks by maxing out my HSA (employer kicks in $500).
__________________
I highjacked a rainbow and crashed into a pot of gold - Bon Jovi
|
|
|
|
Re: How to get more tax protection?
|
04-17-2007, 06:25 PM
|
#7
|
|
Full time employment: Posting here.
Join Date: Oct 2002
Posts: 717
|
Re: How to get more tax protection?
Stocks that have no dividends. You can keep them tax defered until you die. Ibonds used to be great and tax defered, but I don't think they are competitive now though.
__________________
Random Reinforcement is Highly Addictive.
|
|
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
|
| Thread Tools |
Search this Thread |
|
|
|
| Display Modes |
 Linear Mode
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
» Recent Threads
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
» Quick Links
|
|
|
