Long Term Capital Gain Strategies Inside the Social Security Tax Torpedo

Рет қаралды 10,509

Күн бұрын

Пікірлер: 23

@SafeguardWealthManagement 2 жыл бұрын

Hey KZbin Viewers, There was a typo in the ordinary income bracket slides. The 28% bracket shown should be 32%. We apologize for not catching this typo. Thanks!

@keithmachado-pp6fv 2 ай бұрын

Great video. One of the reasons I am not converting to Roth this year is that I am at the top of the 12% bracket with about half the income from my spouse W2 and some interest and the other half cap gains and dividends. After the standard deduction and HSA the taxable income of $94k includes $40k of zero tax cap gains with the other $54k taxed at 10% and 12%. If I were to convert $100k to Roth, $40k would be taxed at 12% and $60k at 22% for an average of 18%. In addition, the $40k of cap gains would be taxed at 15%, bringing the total tax to $24k or 24%.

@pensacola321 2 жыл бұрын

This is my first RMD year. I wish I had Roth IRAs. We will get hammered on taxes for the rest of our lives. DO TAX PLANNING as early as you can....

@daveschmarder-1950 2 жыл бұрын

I worked this out a couple years using an online tax calculator. I took my base incomes and then stepped through various capital gain increases. I had just SS income plus some mutual fund and ETF distributions as my base. I would increment voluntary long term capital gain realizing and would see that bump. I'm in the 12% basic bracket at all times, but would see the the tax rate bump up to 27% if I go a little higher. This is my first RMD year, so I had to adjust by reducing voluntary capital gains. My IRA is smallish and I've held bond and cash investments there and keep the equity type investments in taxable and Roth. I do tax loss selling and have been working on selling mutual funds that I've held up to 25 years. I didn't pay much to tax efficiency back then, but I do now.

@larryjones9773 2 жыл бұрын

The way I created my 'forward looking tax plan', was to build a giant spreadsheet and calculate all numbers to age 95. I have every itemized deduction, 401K withdrawal & rollover, Roth balance, estimated tax payments, all tax return numbers, etc. calculated. It took a lot of time to build, but I can't imagine trying to manage retirement without it. The last thing I added to my plan was how to adjust it in case of a stock crash, which is highly likely.

@mr.j2776 2 жыл бұрын

You obviously spent more time then I did. I have the next ten years charted out.

@wisulliv 2 жыл бұрын

God bless you man. This was no small feat.

@larryjones9773 2 жыл бұрын

@@wisulliv Thanks. My goal is to die broke & minimize taxes, so calculating all my 'numbers' through age 95 is the only way I could figure out how to do it. I would have had to do all these calculations, eventually, so now that they are done, it is 'comforting'.

@Sylvan_dB 9 ай бұрын

I don't see any feasible way for me to avoid paying tax on 85% of my social security. My father is just getting by and pays on 85% of his social security because he has a pension that pays just enough to push him past that cliff. Think they are going to cut social security taxes? I don't. Not since they haven't ever adjusted those threshholds for inflation and SS itself is inflation adjusted so more people every year end up paying tax on SS income. A bigger concern, is what happens to MFJ when one spouse dies? That's right, suddenly single and all the payments go down and all the taxes go up. Doesn't seem right.

@terryadams1830 2 жыл бұрын

Excellent video - You had some information in this one I had never even considered! Thanks Eric! I assume that, for the purposes covered in this video, a $20K pension would impact your taxes exactly like a $20K IRA withdrawal - True?

@FMTFXE22 6 ай бұрын

I have a question. Period. Do we really have to pay tax legally? I don’t think but is it under the fear of car and we pay taxes from when I understanding it voluntary

@pmaurin 2 жыл бұрын

Can you confirm the tax brackets? 28% bracket should be 32%. I’ve seen this in a few of your videos now.

@SafeguardWealthManagement 2 жыл бұрын

Yes, thank you for catching this. We have pinned a correction comment on this video. Thanks!

@voncilledemesa2075 2 жыл бұрын

What if your annual income in retirement is already in the SS 85% taxable amount? Like my husband makes $98000 but I’m retired.

@mr.j2776 2 жыл бұрын

Great info. To make things easier, I will do Roth conversions in 2023/24/25. Then do some tax harvesting in 2026/27. I get a full year of social security in 2028 so I need to get some of these "tax burdens" out of the way before then. Again - thank you for all of the helpful advice.