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Nothing I would want to invest in ..unless you go small cap etfs , 80% of the s&p stocks and 100% of the Dow pay dividends
Please expand on those small cap ETFs. Do they not pay dividends? An ETF is still a form of a fund, so I would expect it to fall under the US financial laws that require that a fund pays annual dividends, no?
Please expand on those small cap ETFs. Do they not pay dividends? An ETF is still a form of a fund, so I would expect it to fall under the US financial laws that require that a fund pays annual dividends, no?
No such thing as any law that requires a stock to pay dividends .....only reits have to pass through 90% of any earnings.
Mutual funds must pay out any capital gains each year ...etfs generally don’t but if the stocks they hold pay dividends they have to pass Them on ..small caps usually don’t pay dividends
I DID! I just finished the conversion when the market crashed in March (and that Roth happily made a 30% increase since March, which will never be taxed!).
But what to do with funds that cannot be converted to Roth, that I don't want to manage, but would like them to follow inflation, without paying taxes until I sell the asset?
Just put in a mutual fund that is more tax favorable, maybe Vanguard Tax-managed Balanced Fund, and then forget about. Honestly when I’m 70, I’m going to do that.
Just put in a mutual fund that is more tax favorable, maybe Vanguard Tax-managed Balanced Fund, and then forget about. Honestly when I’m 70, I’m going to do that.
Yeah, I heard about that one too. Still generates some taxable dividends. Maybe something to consider.
I think the OP actually asked about this once. Iirc, she has a CA residence. If so, she would be eligible to have her existing Kaiser plan, exactly as is, picked up by medi-cal if she’s under the 17k limit. Provided she had the plan for 12 months (and providing the law hasn’t changed since 2014 when I was able to take advantage of this).
As mentioned, I am a resident of MA, but you might be thinking of a different discussion, about qualifying for a lower heahthcare premium if having a lower annual income after retiring early (ie, before 65 when you qualify for Medicare).
Healthcare insurance premiums are lower in MA than other states to start with (ie, this year, in which I am 60 for most of the year, I am paying the full premium for a high-deductible plan, because I still worked til March plus converted my IRA to Roth - and that premium is still only about $430 per month, or a little over $5k per year). But in MA you can get a progressively discounted healthcare insurance premium for 3 different levels of low income (100%, 200% and 300% of federal poverty level). Since the cutoff for 300% FPL for a single person is the annual taxable income of about $38k, I can work it out to qualify for that in the next 4 years before Medicare - and I do plan to do that (and yes, that is a part of the reason why I was asking about investments that do not pay dividends).
Don't buy anything unless you absolutely need it, and then buy second hand if you can. . Reduce your sales tax load to near zero.
Haha, that wouldn't be a new adjustment, I have been doing that all my life :-). But I have everything I need by now, I buy so little stuff (basically just food, and transportation + accommodation costs of travel) that sales tax are not a big deal.
I just don't want to pay income tax on money that increases on paper, without being withdrawn.
As mentioned, I am a resident of MA, but you might be thinking of a different discussion, about qualifying for a lower heahthcare premium if having a lower annual income after retiring early (ie, before 65 when you qualify for Medicare).
Healthcare insurance premiums are lower in MA than other states to start with (ie, this year, in which I am 60 for most of the year, I am paying the full premium for a high-deductible plan, because I still worked til March plus converted my IRA to Roth - and that premium is still only about $430 per month, or a little over $5k per year). But in MA you can get a progressively discounted healthcare insurance premium for 3 different levels of low income (100%, 200% and 300% of federal poverty level). Since the cutoff for 300% FPL for a single person is the annual taxable income of about $38k, I can work it out to qualify for that in the next 4 years before Medicare - and I do plan to do that (and yes, that is a part of the reason why I was asking about investments that do not pay dividends).
Good job. I love MA. Probably headed there next.
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