Tax-Free Retirement Income with a Taxable Brokerage Account

[@foundryfinancial]

Have you ever considered using your taxable account for tax efficiency?

[@Bondbeer]

Great video. I agree 100%. I am had a brokerage account for 40 years and have never taken a capital gain, although I do have some dividends that i reinvest. I do sell my losing stocks to take advantage of $3k per year loss against ordinary income. My pension and other income does not allow me to get into the zero bracket for cap gains but I plan on continuing to defer gains and my heirs will get a step up in basis and won’t need to liquidate the account in 10 years like they would with a Roth.

[@todd.westra]

This video simplifies the complex world of retirement taxes. Using a taxable brokerage account strategically can be a game-changer!

[@foundryfinancial]

Thanks! Yeah, I think a taxable brokerage can be a powerful tool.

[@jordanmadden7388]

Thank you for this video. I don’t think nearly enough people in the KZbin retirement space realize the advantages to long term capital gains tax rates.

[@Bryguys91]

Still prefer a roth especially if you plan to utilize a dividend income strategy and you don't want to worry about dividend type. That opens up a larger number of high dividend investments not considered qualified. BDC, REITS, CEF's etc. But this was a very insightful video

[@foundryfinancial]

Thanks!

[@MyWillbot]

5his was exactly the video i was looking for.

[@matthewowcarz8259]

Maxing out my roth ira and the most i can put into my 401k (no match boo!) Until my kids are done with college to max out the benefits they receive for college funds. Will start doing this once they're done with school. Very interesting. Thanks.

[@MeltingRubberZ28]

For this reason I actually prefer a taxable brokerage to a differed tax retirement account (traditional IRA, 401k)

[@davidjensen8090]

Interesting stuff; lends itself to this sort of question: For a given retiree, what is the optimal % of funds in the (tax-deferred, tax-free, taxable) buckets ?

[@foundryfinancial]

Thanks! It’s partially determined by your tax bracket during your working years and how easy it is to control your income post retirement. It’s such a case by case calculation.

[@patienceisalpha]

As a married couple filing jointly, I don't use a Roth ira, I plan to retire abroad in places where the Roth is not recognized. The taxable brokerage account is amazing. 120k of gains tax free a year

[@foundryfinancial]

Taxable brokerage accounts are often overlooked and are a powerful tool.

[@winnerwinnerchickendinner8809]

I generated an officially lost on my brokage acct and buy back in for tax write off and loaded up on aristocrat dividend stocks and went long to offset any gains and loses

[@Stellar148]

Thank you VERY much. This is an eye-opener! ❤❤❤❤❤❤Liked and subscribed

[@GrandpasPlace]

Well, if I understand it correctly, if you have over 1mil in a brokerage account plus a traditional IRA and Social Security, you can donate 100% of the distribution from the IRA AND 100% of the social security to a charity and use it as a write off letting you withdraw a little more without taxes.

[@dominichoward4833]

Great video! Can you go over this concept and qualified dividends in a taxable account? Which funds/ etf would cover this? Im looking at VYM versus SCHD also some S&P type vehicles... I see some years SCHD is non qualified. I want to see the most optimal way to make this work including other ETF's and mutual funds. Thanks.

[@MeltingRubberZ28]

VYM was 100% qualified per filed taxes. SCHD does seem to flip flop since it's partially actively managed

[@ConnieShen-l9f]

Great video and on point. I have question and hope Kevin could answer. We retired last year 2023, beginning of 2024 we converted some amount to Roth while keeping ourself within 22% bracket. Does it make sense to increase our convertion to 24% upper limit bracket knowing celling is much higher result we can move much more amount to Roth? Basically the idea is to convert all/as much as we could within the "sweet spot". Yes, it will also increase our Medicare surcharge but I would sacrifice paying extra Medicare surcharge for the benefit of tax free in Roth IRA. Thank you.

[@foundryfinancial]

I’d suggest you run the numbers the numbers. Lots of variables and hard to give a blanket answer.

[@merlin0152]

So what happens to the 'Ordinary' dividends that you necessarily get in that taxable account during the years you are trying to implement this strategy.....does that income get added to what you take out in long-term capital gains and counted against that threshold for the 0% tax bracket ($89,250 + S.D. $13,850) and pay taxes only on the dividend income?

[@dougbeck4524]

If left for heirs do they have to be the beneficiary, or can it be left to one;s estate and then be divided by one's will ?

[@YIWOTY]

Good video.

[@frankrothiz4u]

Even Fed tax free the money may bump up the taxes on your social security check and your Medicare part B, Yes, No ? And as you mention some states DO have a cap gain tax

[@ikiruyamamoto1050]

Did I miss the part where he actually delivers on his thumbnail "1,000,000 tax-free" with related "tax-free retirement INCOME..."?! Was it 10 years (retiring at 60 with no income for 10 years) x the $50,000 annual exemption (before capital gains taxes kick in) x a married couple? Because the rest of it was just the stepped-up basis rule.

[@merlin0152]

Believe that was a nod to a typical 'married filing jointly' scenario where he outlines how you can take $100k+ per year and the example of retiring 10 years early. 10 x $100k+...

[@gg80108]

Anyone have a good technique for finding out the tax treatment of distributions?

[@TeddyAlexanderv6]

Tax laws can be so complex, and it’s super helpful to break them down like this. Understanding how different policies can impact our finances is crucial for making informed decisions.

[@NikolasMartine01]

Making profitable investments during this time of political change can be risky without that insight. For me, working with an adviser is the best first step to navigate these complexities and make informed choices.

[@OscarBarnaby3k]

I think having an investment advisor is the way to go. I've been with one because I lack the expertise for the market. I made over $490K during the recent dip, highlighting that there's more to the market than we average folks know.

[@BorselinoThadchack]

dude, you are great but i am still confused with the math. So you are saying that I made $25k and because of standard deduction of $13k, which LOWERS my overall after tax to $12k, i can now take $30 k from taxable account, and all will be tax free?? did I understand this correctly??

[@foundryfinancial]

As long as you’re referring to long term capital gains - that should be correct. But you should talk to a professional before making any moves. I don’t know your situation, but that math is correct based on my understanding of your situation.

[@hippusmaximus9319]

Plus, all this talk is in regards to FEDERAL taxes. Your specific STATE taxes is another headache to consider. Just take a look at what Jeff Bezos did - he moved from Washington state to Florida to avoid Washington state's tax on capital gains of his Amazon stock.

[@lostboi3974]

Qualified dividends

[@kaiman5307]

Can I use my social security income to invest in brokerage account?

[@foundryfinancial]

Why couldn’t you? I just want to make sure I’m not missing.

[@kaiman5307]

@@foundryfinancial well, because I asked the brokage firm if I can contribute SS income onto IRA , they told me no, need W2 income, so taxable brokage account is ok? Can you do a video on the subject investing with SS income for people don't need it . Thanks

[@foundryfinancial]

@kaiman5307 got it. Yeah, you can definitely invest social security money in your brokerage! It doesn’t require earned income like an IRA.

[@kaiman5307]

@@foundryfinancial thank you

[@jimmyshirley7936]

Can you do a BACK DOOR ROTH with a Taxable Brokerage Account???

[@MeltingRubberZ28]

99.999% sure this is a no

[@franciscoferrer6419]

How can I open a Taxable Brokerage Account?

[@MeltingRubberZ28]

Vanguard, fidelity, etc

[@nomaster5647]

Click bait. The reality of 1000000 in capital gain is for someone not watching you

[@planaheadstayahead]

At 4:45 you mentioned "not just in stock but in profit" meaning if you had bought $100k worth of stock and it went up to $212k and you sold it all you would still be in the 0% bracket long term capital gains after standard deduction and all married filing jointly? @kevinlum

[@foundryfinancial]

Is that a question? But that’s essentially correct in the right situation.

[@judokick2117]

​@@foundryfinancial what is the right situation? How do I figure it out? What should I read to learn this?