Katsmeow
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Jul 11, 2009
- Messages
- 5,308
I am totally clueless about investing in a taxable account. All of our investments have been in retirement accounts. However, we just sold some property that we owned that had no debt on it and have refinanced our home to do some improvements. We will be using some of it for home improvements, but will have about $100k cash left over.
I am uncertain how to best invest it to limit income taxes. We have a 55/45 allocation with DH's IRA at Vanguard (which we do draw from) and my 401(k) at Fidelity (which we don't draw from).
DH is retired (he is 65) and I'm semi-retired, working very part-time. Ordinarily to make big purchases (car, major home improvement, etc) we need to withdraw from his IRA which we don't love doing since a large withdrawal is taxable.
I expect that in 2013 we will be in the 25% tax bracket.
I sort of plan to take the $100k that is in taxable accounts and put it in Vanguard and just have it sit there but it will be available for those kinds of large withdrawals in the future. For example, we may want to buy a car in a couple of years and we could part of it for that. Or we might use it for major home repairs, etc. (Nothing really planned for any time soon.)
I'm uncertain where to put the money at Vanguard from a tax standpoint. I just don't know that much about how taxes work on investments since we have never had to pay taxes on any given that everything has been in retirement accounts.
I am uncertain how to best invest it to limit income taxes. We have a 55/45 allocation with DH's IRA at Vanguard (which we do draw from) and my 401(k) at Fidelity (which we don't draw from).
DH is retired (he is 65) and I'm semi-retired, working very part-time. Ordinarily to make big purchases (car, major home improvement, etc) we need to withdraw from his IRA which we don't love doing since a large withdrawal is taxable.
I expect that in 2013 we will be in the 25% tax bracket.
I sort of plan to take the $100k that is in taxable accounts and put it in Vanguard and just have it sit there but it will be available for those kinds of large withdrawals in the future. For example, we may want to buy a car in a couple of years and we could part of it for that. Or we might use it for major home repairs, etc. (Nothing really planned for any time soon.)
I'm uncertain where to put the money at Vanguard from a tax standpoint. I just don't know that much about how taxes work on investments since we have never had to pay taxes on any given that everything has been in retirement accounts.