Quote:
Originally Posted by Vegas69
Beautiful  So you are using dividend income on stocks held over one year? Is that correct? |
Sorry Todd -- I'm not sure who or what you're asking...
If you're asking me about my income? All of my income is derived from Dividends - Interest (received) - Long or Short Term Capital Gains - and income from limited partnerships (apartment complexes), which have offsetting depreciation.
I rarely do short term capital gains -- and since I have no earned income -- I'm not sure what the tax rate is on them but my guess is they'd just be at the tax rate of whatever that "income" is, dollar wise, would be. Probably total STCG last year might have been 100K or less... so no big tax hit there.
Having said that -- my personal tax situation is unique - probably - to the group here since there is zero earned income to deal with. My situation is where a guy wants to be when they're retired -- which is partly why I posted what I did. In retirement you want to have very low income taxes - zero or little debt - and no earned income (which affects EVERYTHING).
This is another reason TAX FREE BONDS are such a stupid investment idea as people reach retirement age. The tax rate is so low at that point - what's the point in taking a poor rate of return when you're not really in a taxable situation to begin with?!?!?! WTF!?!?! Stupid. When Gwen was working - and she had a very high income level (mid six figures) - then part of our portfolio was invested in TFMunis because the top tax rate of almost 40% plus the AMT rate - a tax free income of 3 and 4% on the bonds made sense. It doesn't anymore since she retired in 2010 and now we have "no income" (I love that statement).
BY THE WAY -- to those that wonder why I post such personal info. It's ONLY TO HELP OTHERS. I don't really give a sh!t about such things. Gwen or my entire working careers where as officers of public companies - and as such, all of our incomes where public information. All a person had to do was to Google it and it and all the "compensation" was there to see. I got over being offended by it long ago. And if I can help one person gain some financial footing. Then fantastic. Back when I was a VP we didn't have the internet -- so it made it far harder for people to find out such things... you had to get a "prospectus" or read thru the filings to get this info - but if you wanted to know - it was right there in print. Now it's all on the web. Ours isn't any longer since we're no longer officers of any publicly traded corporations.