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I always hear about this but other than those who have multiple real estate rentals or businesses that give passive income forever unless sold that's all I see this being applicable to.
If i retire at 50-55 years old and I know that I plan to live comfortably off of 100k per year by selling assets in my tax deferred account I essentially pay 0 tax (standard deduction included) on money that I deferred during my peak earning years? If i wanted to withdraw 200k i would only pay 15k on that addtional 100k? Once that is liquidated I move on to my taxable account doing the same thing 100k selloffs per year and essentially paying 0 tax since i have no other income. So roth iras's come into play along with assets such as tax free municipalities that i believe you can push your sold assets for the year above 100k but those won't be counted in your taxable income?
I don't think most know about how much less tax they will pay down the road.
2019 capital gains tax brackets for MFJ:
If i retire at 50-55 years old and I know that I plan to live comfortably off of 100k per year by selling assets in my tax deferred account I essentially pay 0 tax (standard deduction included) on money that I deferred during my peak earning years? If i wanted to withdraw 200k i would only pay 15k on that addtional 100k? Once that is liquidated I move on to my taxable account doing the same thing 100k selloffs per year and essentially paying 0 tax since i have no other income. So roth iras's come into play along with assets such as tax free municipalities that i believe you can push your sold assets for the year above 100k but those won't be counted in your taxable income?
I don't think most know about how much less tax they will pay down the road.
2019 capital gains tax brackets for MFJ:
Capital Gains: Tax Rates and Rules for 2024 - NerdWallet
When you sell a security for a profit, the money you make from the sale is called a capital gain. How that money is taxed depends on what the asset was, how long you owned it, your taxable income and your filing status.
www.nerdwallet.com