Transcripts Including Tag: lossharvesting

Description: Invest :: Tax loss harvesting

These are the transcripts that include the tag lossharvesting.

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018: Go Curry Cracker Capital Gains Losses Roth Conversion Brad Barrett You know to talk us through that real quick it's as I understand it's the harvesting the capital gains is a big aspect of that right Jeremy. Can you can you talk the audience through how that works.
018: Go Curry Cracker Capital Gains Losses Roth Conversion Go Curry Cracker Yeah. So. So one of the one of the biggest. I guess one of the biggest challenges people have with sort of like continually harvesting losses. You know the thing everybody talks about and harvest losses is that once it once what's the market's gone up, you don't have any losses anymore there's nothing to harvest. Right. But. You know if you can continually step up your basis every year that means you know you always have something kind of sitting around at around the current stock price and the current market price. And because the market you know stocks are volatile they'll come down they'll go up you know when they dip you're able snag a little lost.
018R: Capital Gains Harvesting Never pay taxes again Brad Barrett All right Jonathan So let's let's talk about the episode that we released on Monday with Jeremy from go curry cracker. All right so I have a ton of takeaways. I always when I listen to our episodes I probably listen to them three to five times every single week. I just take notes. I've got a ton of little things here you know aside from the tax gain harvesting and the tax loss harvesting which which is crucial I always like to look at the little things the little decisions and some unconventional choices which I know I mentioned a few times in the episode but just something really simple like how Jeremy and Winnie go to the farmer's market at the end of the day and are able to haggle and save a couple of extra bucks and get a whole bunch more produce and food. Again it's a tiny little thing and those couple bucks or even 10 $20 that they saved every time they win is not really going to move the needle all that much in the grand scheme of things. But it's just such a perfect illustration of how we live our lives just slightly differently. And another one was when I talked about how we took our trip to Disney World when my daughter Molly was just going to turn three because if we went 10 days later it would have cost us an extra 400 bucks. And they went on their business class trip when his son was under 2 and could still be a lap child. And it's just it's taking just a little closer look at life and just knowing what the rules are maximizing them and just thinking a little bit differently than the next guy. We're not doing anything crazy taking a 3 year old to Disney World. It's not revolutionary in and of itself but just looking at that rule a little bit more closely. Again just saved us 400 bucks. That's a neat little hack just for being a little bit different.
020: Entry Level Middle Class Lifestyle and a FI approach to Insurance Jonathan Mendonsa So let's just real quick let's catch up what all have we talked about so far what sort of what sort of things have we unpacked. We walk through how to crush your food budget. We walk through fitness while being frugal. We walked through investment the basic principles of investing with William Collins. We've talked about building a money framework with Mr. 1500. We've unpacked how to save 75 percent of your take home pay with frugal woods. We unpacked tax loss harvesting capital gains and capital losses with go Curry cracker. And we've talked about how to oh my goodness we talked about one of my favorite was millionaire educator how to save 100 grand a year in pretax buckets and the unfair advantage for teachers firefighters police officers. And then we unpack travel rewards how to travel the world for free. So you know it feels like that was so long ago. But at the same time it feels like it was yesterday. And Brad and I had this goal from the very beginning of telling a story and kind of walking you through all these completely different ideas and then building a story and showing you how it fits together so you can figure out how to take all this stuff and put it in your own personal framework and I think at least to that point you know I believe we've accomplished that. But I believe y'all are telling us that we are doing that we are we are we are giving you that content so this is the episode where we just pat ourselves on the back for that and then we keep on going right.
025R: Friday Roundup Case Study Part 4 Brad Barrett All right. On last week's Friday round up we had a question from the audience about reinvesting dividends and Dominic actually got in touch via e-mail and said this. He said regarding episode 24 R I personally don't think one should reinvest dividends automatically. If investing in a taxable account or as we now call it a post-tax account as this can complicate tax loss harvesting by creating many tax slots when you sell. So you know I wrote back to Dominic and said that's a very interesting thought. One I haven't considered. Do you have any go to articles or sources that can help the audience with this and he sent an article from Bhogle heads dot org and we'll link to that in the show notes. And just further my answer was I still think at least based on the knowledge I have today for probably 99 percent of people it makes sense to reinvest the dividends. But of course I'm always willing to change my mind. If new info comes along so well I still think my answer is accurate for the vast majority of people. I am certainly cognizant of the fact that we have a lot of high level smart people in here who are going to do this tax loss harvesting So if that is a consideration for you then I highly suggest checking out that article that will have linked up to it in the show notes and as just an aside if you're interested our shownotes you can always reach them if you go to choose FI dot.com. Click on the podcast or really the easiest way. Just quickly get on our email list. You can do that by texting. Choose FI to 44222. Or you can always just head over to choose FI dotcom slash subscribe.
043: Drawdown Strategy Retirement Manifesto Fritz "Retirement Manifesto" Gilbert You're absolutely spot on and I really do avoid the tax hit if there's a taxable event and big capital gains on something. OK it's simple enough right. You don't you don't simplify at all costs you simplify within what makes sense. Now what I have done is if I've got a position that's got a material loss I'll go and sell that part of the simplification right. It was a bad buy and it's just kind of drifting out there and we never want to sell the losers. Go and sell the loser. Do the tax harvesting and use that as an opportunity to sell something that's gained, and between the two. You just knocked off two outliers that you can then move into the more simplified strategy so you can kind of I would say a rifle shot at instead of hit it with a shotgun. You know you've got to be selective on how you do it. But just being aware of that principle of trying to simplify things and I think it goes far beyond finances. One of the things we've done which has worked out extremely well for us. We downsized out of our big city house. You know we moved up to our retirement cabin in the mountains. We got rid of 30 years worth of stuff in 24 hours on Craigslist. That's a that's a that's a separate post in itself. But you know we downsized we simplified our lifestyle we we we got into our retirement town before we actually retired. You know all those lifestyle simplification concepts apply as well as they do on the financial side.
046: Our Next Life The Reveal Tanja "Mrs. Our Next Life" Hester Yeah I mean you guys know I can definitely go on at length about this but I think the big thing is really just the uncertainty that's out there with health care right now is forcing a lot of us to keep a lot more flexibility in the plan that this is to me. The biggest reason why I think the 4 percent rule is insufficient not because the math underlying it doesn't hold up but that the 4 percent rule is based on the idea that you can have level spending over time. And I think that with just not knowing what's going to happen with health care with Medicare with all of it I don't think any of us can assume that level spending over many many decades is realistic. You know even with Medicare I think everybody says like oh we just need to get to Medicare and then we'll be fine like the average Medicare recipients still spends $200000 out-of-pocket on health care in their lifetime. So it's not like Medicare is covering everything. And is this amazing safety net. It covers things and that's good to have. But we all need to be accounting for other potential spending. So I think right now big picture is just keeping our eyes open. We're certainly going to stay on top of developments in policy. But also I think a point that I'd make too is it's worth looking at your own situation whether it's doing some of the calculators on healthcare.gov if you're in a state that doesn't have its own exchange or if like us you're in a state like California that has its own state exchange you can do different calculations and actually figure out what your subsidy might potentially look like. You can project what your out-of-pocket healthcare costs might be and look at what your out-of-pocket Max will be and that may tell you some useful information like if you play around with different income numbers you might find that by raising your income a little bit you're leaving a very large healthcare subsidy on the table. And that to me is a big benefit of looking really closely at things like tax loss harvesting where I think all of our listeners here know what that is but like if you're your shares dip you can sell some some shares in a fund and buy another similar find but then lock in that loss and it gives you capital loss which might be helpful in a tax sense. But what that also does is it lowers your cost basis in those shares. So then later when you sell them you have proportionally more capital gains there which is counted directly as income in your AGI which is how health care subsidies are calculated and that extra bit of income might cost you a big healthcare subsidy like in our case what we're looking at for next year is to get about a $600 per month reduction in our health care premiums and that's huge like $7000 a year that we'd be giving up to save a little bit of money in taxes is for sure not worth it to us. So this is not to say don't tax last harvest but just don't take it as a given that your tax minimisation strategy is necessarily going to be the best thing across the board. It's worth also accounting for health care.

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