Tykimeister
Recycles dryer sheets
- Joined
- Aug 21, 2008
- Messages
- 98
Hello I had a couple questions I would like to seek input on. I am in the process of buying a house so I have two issues I don't fully understand. My goal is to either pay cash for my house now or possibly finance roughly 90,000 and plan on paying that off be years end. To pay all cash I would need to liquify some assets.
Question 1
Should I sell only stocks in the green, or should I include some in the red?
For example, I have 90,000 in SP 500 that would be 32,000 taxable earnings. (I did make 20,000 contribution to this fund that is less than 1 year (not entirely sure how its calculated short vs long term gains when they both are in the same account and type of fund).
Another example, I have 6,700 of another stock that is in the red -5,000
I plan on being in the 32% tax bracket by years end and I don't plan on selling any other stocks. I maxed out my 401k already this year and I still need to make a non-deductible IRA contribution to my traditional IRA. Any other investment purchases would be in the brokerage account. I know there may be advantages with selling the red stocks over only the green, that is what I want to figure out which is better to sell.
Question 2
Generally speaking, is selling stocks in my brokerage account a good idea instead of taking out a mortgage for only 90,000? I think my closing costs will be roughly $5,000 with financing, $2000 without. Along with paying interest for potentially 9 months or longer then paying off the principal as soon as I can.
My goal is to make the best financial decision and to also understand the tax implications for next year. I have an emergency fund.
Thank you and I would appreciate any insight that is offered!
Question 1
Should I sell only stocks in the green, or should I include some in the red?
For example, I have 90,000 in SP 500 that would be 32,000 taxable earnings. (I did make 20,000 contribution to this fund that is less than 1 year (not entirely sure how its calculated short vs long term gains when they both are in the same account and type of fund).
Another example, I have 6,700 of another stock that is in the red -5,000
I plan on being in the 32% tax bracket by years end and I don't plan on selling any other stocks. I maxed out my 401k already this year and I still need to make a non-deductible IRA contribution to my traditional IRA. Any other investment purchases would be in the brokerage account. I know there may be advantages with selling the red stocks over only the green, that is what I want to figure out which is better to sell.
Question 2
Generally speaking, is selling stocks in my brokerage account a good idea instead of taking out a mortgage for only 90,000? I think my closing costs will be roughly $5,000 with financing, $2000 without. Along with paying interest for potentially 9 months or longer then paying off the principal as soon as I can.
My goal is to make the best financial decision and to also understand the tax implications for next year. I have an emergency fund.
Thank you and I would appreciate any insight that is offered!
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