FANOFJESUS
Thinks s/he gets paid by the post
Is that the smartest thing to do? I don't have any other income other than sells of mutual funds.
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Your dividends in taxable accounts are taxed as such. Obviously in pretax they are not. As far as market fluctuations I don't think it's an issue. You can make an argument you're buying more shares in a down market but I'm not going to waste my time worrying about it.I think the best plan is to spend them but the market can be up or down a lot when they are paid out. Could that hurt me be taking them? If I don't take them I have to pay taxes on money that I did not spend.
I spend the dividends. If I don't need them for spending, I buy whatever asset I need to get back to my AA. I would just prefer I never got any dividends or capital gains distributions.
We got that surprise last month. Two of our taxable funds paid out a total of about $46,000 in year-end distributions creating an unexpected 10K+ tax bill.We switched some , and going forward only buy ETF's or Stock to avoid the capital gains distribution Surprise
I have almost everything in mutual funds instead of ETFs because that's where I started out and I don't trade very often. I don't understand why ETF distributions present less of a surprise than mutual funds. Don't they both just aggregate the underlying stock distributions?We switched some , and going forward only buy ETF's or Stock to avoid the capital gains distribution Surprise
I have almost everything in mutual funds instead of ETFs because that's where I started out and I don't trade very often. I don't understand why ETF distributions present less of a surprise than mutual funds. Don't they both just aggregate the underlying stock distributions?