5 Taxable Account Rules to Save SIGNIFICANTLY on Taxes (Revisited)

Timestamps:
0:00 5 Taxable Account Rules to Follow for Tax-Efficient Investing
0:22 An Overview of the Retirement Options We Have
1:26 Taxable Account Rule #1
5:47 Taxable Account Rule #2
8:53 Taxable Account Rule #3
10:00 Taxable Account Rule #4
12:28 Taxable Account Rule #5
15:22 Bonus Guidelines - #1
16:05 Bonus Guidelines - #2
18:34 Bonus Guidelines - #3

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Always remember, "You Don't Need More Money; You Need a Better Plan"

[pensacola]

As a retiree I confess to making a lot of these mistakes. My question. So what's the person to do?
I try to diversify into various type of accounts and various type of classes. I am also dealing with RMDs.
At some point, I recommend just doing the best you can, going with the flow, pay your taxes and enjoying your affluence. Trust me, life is too short.

[keithmachado-ppfv]

Good video. I agree with your points, however I prefer holding mutual funds in my brokerage account because I am in the zero capital gains bracket and therefore my basis increases without paying tax currently and I will pay less tax when I sell even if I bump into the 15% cap gains bracket. If held in an IRA the forced capital gains will be taxed at ordinary income tax rates when eventually withdrawn.

[KentBrono]

I have 35% of my capital investments in an IRA, 25% in index funds, and the balance spread across other investment accts totalling over $250k. I took a big hit in Q2, 2023. Right now i am just looking for ways to recover in 2024.

[xiuying]

Great video Eric, I believe every family has that one person who will break the family financial struggle, I hope you reading this become the one, and all who said Amen.

[jefflloyd]

Normally I say 'always good Eric', but really, you are Great. The best info explained well.
Thank you.

[hoytoy]

Low cost index funds. Buy and hold. Enjoy the growth.

[dash]

Thanks for your insights. Most of them I knew ... but only in isolation. You helped integrate them into the bigger picture, explaining how one thing affects the other.

[everlastingarms]

As someone whose investments are almost all in a rollover IRA from the 401k, this was very helpful as I approach RMD's a few years from now, and need somewhere to park the excess. (A good problem to have, to be sure!) All of this made sense; great job with this.

[patrickoconnor]

Always look forward to your segments. Great content

[bobbert]

You always have such good content. Our taxable account right now are limited to a cash management account. When RMD's start, that will change. This video was really valuable to know what not to do. I suppose we'll probably invest excess money into ETFs in a brokerage account.

[todddunn]

In retirement I found that I reached a point where growth no longer matters. I have no desire to leave anything to anyone and have enough in my accounts to live out my life comfortably with zero growth. Consequently I see no reason to invest for growth. Personally I feel no need to invest in stocks at all and would certainly never buy any sort of "fund". I also don't subscribe to the constant growth philosophy. When you have enough, why do you need more?

[dj-dgwx]

It’s all very confusing. Thanks for this info. I can see strategy is important.

[humanaffectation]

Why do people spend so much time to save a tiny bit of taxes? Tax drag(specifically from tax advantages dividend income) is only a major issue for people in high tax brackets. If that's not you, the tiny bit of taxes you pay just raises your basis and means you can take out more usable money when you're on social security without it seriously affecting your provisional income and keeping more of your SSI tax free.
It also helps if you end up needing money for a large purchase. Selling those funds won't require much of a tax hit as you've already spread out much of the taxes on your increase over many years.

[mikeritchey]

If you are willing to tell what not to do with type of account, can you please make a corresponding video telling possible strategies with this type of account to make it not so "leaky"?

[LasithSK]

Thanks for the great info. Just to clarify, is it not recommended to invest in a high dividend ETF such as SCHD & reinvest dividends in a taxable brokerage account? Thanks!

[pware]

I own Qualified high yield Preferred stocks in my taxable account.. probably should reconsider this in my "leaky" bucket since it applies to my IRMAA in negative fashion.
Instead of bonds or dividends in your taxable account.. maybe change the "income" part of portfolio to Buffer ETF's.. no dividend, only long term cap gains and only when you
sell... or never sell and pass on to heirs tax free with a step up in basis.

[Shoebutie]

Not sure I fully understand why an ETF results in lesser taxable income than a mutual fund in a taxable account, but accept that this is the “answer”. Good to know. Thank you

[ahsugoi]

Does rule #2 mainly apply when you don't intend to spend the dividend income? If you're living off the dividend income don't high income funds make more sense?

[chris_harvey]

Why didn't you compare VUG to VIGAX? That would have been a direct comparison of an ETF to a mutual fund. Comparing VUG to totally different funds didn't make sense to me.

[ld]

Very good video, examples and excellent explanation Eric. I'll have to watch this a few times to digest it all. Thanks for your great content, it's always a learning experience. Larry, Central Valley, Ca.