haha
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Sometimes I have trouble deciding even how to think about which of my accounts should hold different assets. I have some savings accounts and CDs in taxable accounts, even though this is not tax clever, because I might need some money outside retirement accounts, and anyway my retirement accounts are not all that big that I can put most assets inside them. So even at today's low rates, I might have $5000 or so in taxable interest from savings accounts.
Roth? I really am not sure how best to approach this one. It is a great place to get long or short term gains, and also of course interest. I just put some of each type investment in the Roth. If tax laws stay the same, the Roth will be a security blanket for me and I will not ever withdraw from it. My TIRA is moderate size, larger than the Roth and smaller than taxable. I try to put bonds and REITs in this one. Lately though, if I have some room in this TIRA and not in other accounts, I have been thinking that even taking capital gains in here is not necessarily a bad idea. I pay RMDs true, but only about 4% per year and this increases only very slowly for a good while. So if I realize a $40,000 gain in the TIRA, when I file taxes for that year I will pay ordinary income taxes at 15 or 25% on only 4% of that $40,000 gain. Is this really a very big deal? I am not really clear on this, but it seems to me that I will be getting a big time value of money boost on what I eventually clear from this transactions, as compared to having to pay all the tax the following year, especially if I am getting a decent return in this TIRA account.
Does this make sense, or am I perhaps too sleepy to understand?
Ha
Roth? I really am not sure how best to approach this one. It is a great place to get long or short term gains, and also of course interest. I just put some of each type investment in the Roth. If tax laws stay the same, the Roth will be a security blanket for me and I will not ever withdraw from it. My TIRA is moderate size, larger than the Roth and smaller than taxable. I try to put bonds and REITs in this one. Lately though, if I have some room in this TIRA and not in other accounts, I have been thinking that even taking capital gains in here is not necessarily a bad idea. I pay RMDs true, but only about 4% per year and this increases only very slowly for a good while. So if I realize a $40,000 gain in the TIRA, when I file taxes for that year I will pay ordinary income taxes at 15 or 25% on only 4% of that $40,000 gain. Is this really a very big deal? I am not really clear on this, but it seems to me that I will be getting a big time value of money boost on what I eventually clear from this transactions, as compared to having to pay all the tax the following year, especially if I am getting a decent return in this TIRA account.
Does this make sense, or am I perhaps too sleepy to understand?
Ha