Quote:
Originally Posted by CRCRFT78
I also have a brokerage account with Schwab that I'd like to start using to help supplement my retirement accounts. Do you suggest getting started with that in the same manner? Pick some names we know, study the charts and buy some stocks? Or should I sit down with my tax guy before getting started with that to discuss everything?
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Any account that is OUTSIDE of a "tax deferred" type retirement account - is going to be subject to tax accounting. So depending on your trading - your amount of dividends received - whether or not those dividends are "qualified" etc. Your income at the time. Whehter or not you OFFSET the gains with sales of loses etc (which is what people do at year end -- they take gains and offset those gains with taking a loss thus rebalancing their accounts if they need to etc).
If you're not going to TRADE -- so you're not in and out of stuff all the time - You buy and hold for that magic ONE YEAR AND A DAY - which makes the trade Long Term Capital Gain.... taxed currently at 15% -- and the QUALIFIED dividends are currently taxed at maximum 15%... OR you don't do anything - you just let the stuff grow -- then you're only taxed on the dividends received . You have to make a lot of dividend income to really incur much tax due. 15% is pretty dang small amount - and you should be happy as a clam if you're picking up 10 grand a year in dividends and only owe 1500!
