SlowTwitcher
Dryer sheet aficionado
- Joined
- Nov 8, 2006
- Messages
- 29
I'm selling some individual stocks(and closing the account) in a taxable account worth about $8000, to reallocate. This is about a $1200 loss. This money is sort of rainy day fund/emergency fund. I am considering opening a Roth and making max $4000 contributions for 2006 and 2007. I would likely invest in Vanguard Int. Bond Fund, Questions:
1.) Does this seem reasonable, since I can withdraw my contributions, $8000,
without penalty and tax-free anytime if I ever needed to?
2.) Can I write off the loss on 2007 taxes or can it only offset gains?
3.) Does a bond fund make sense since I won't have to pay tax on interest ever
and I'm growing tired of currently being taxed on extremely small dividends yearly?
4.) It's easy enough to calculate my loss on this sale (purchase price less sale
price) but how do I figure in the reinvested dividends?
Thanks for any help. I've never actually sold any stock before so this is new
teritory for me.
SlowTwitcher
1.) Does this seem reasonable, since I can withdraw my contributions, $8000,
without penalty and tax-free anytime if I ever needed to?
2.) Can I write off the loss on 2007 taxes or can it only offset gains?
3.) Does a bond fund make sense since I won't have to pay tax on interest ever
and I'm growing tired of currently being taxed on extremely small dividends yearly?
4.) It's easy enough to calculate my loss on this sale (purchase price less sale
price) but how do I figure in the reinvested dividends?
Thanks for any help. I've never actually sold any stock before so this is new
teritory for me.
SlowTwitcher