Need Assistance For Making Portfolio More Tax Efficient The top capital gains (and qualified dividends) rate of 20% only applies to those in the top ordinary income tax bracket - 39.6%. Between 25% and there, there are 28%, 33%, and 35% brackets.
You might be thinking about the Medicare surtax of 3.8% on investment income, to the extent that it raises one's MAGI over a certain threshold. For MFJ, that's $250K, for singles, that's $200K.
So, if you are single, and your MAGI, excluding cap gains, is $190K, and you have $30K in cap gains, then the last $20K (the portion over $200K) gets taxed an extra 3.8%.
Retirement: Is the 4% Rule Still Relevant? As we look forward to a seventh year of this fat cow (bull market), it's hard not to think about
Genesis 41 in response to your question about what to do with the extra money.
Retirement: Is the 4% Rule Still Relevant? I have a question in regard to RMD (Required Minimum Distributions).
Tax deferred (IRAs) requires distributions at age 70.5 due to RMD. What dynamic does this play in the 4% rule?
I can imagine that if RMD is anywhere near 4% of my overall portfolio then possibly 1% of this 4% will be going to the IRS (25% tax bracket).
So, in terms of after tax dollars, I might need to live on 3%, me thinks
Josh Brown: "Buy Europe" At ETF.com, Dave Nadig lists deutsche X-trackers MSCI Europe Hedged Equity ETF (I think symbol is DBEU?) as one of his top 3 eTfs for 2015.
