Sentences with phrase «in taxable accounts because»

Caution must be exercised in taxable accounts because a switch to lower cost products might result in a taxable event.

You can hold these investments (as well as tax - exempt bonds) in taxable accounts because they tend to be more tax - efficient by nature.

As noted then, it was based on a C.D. Howe Institute report that suggested one possible solution to the alleged retirement crisis was simply to go back to the half - century - plus RRSP and raise contribution limits for the (relatively) few affluent people who are forced to save in taxable accounts because they've maxed out on RRSP room.

TIPS are a nuisance in a taxable account because you must pay taxes on the increase in principal (the inflation adjustment) each year, not at maturity.

There are merits to tax diversification between tax - deferred and tax - free but they will beat saving in a taxable account because

They can be a pain if you hold the mutual fund in a taxable account because the distributions are taxable whether you have them reinvested or not.

Theory is one thing, but in practice I don't see any benefit to a long term investor in holding cash in an RRSP or in a taxable account because of the tax treatment and the non-need for liquidity long term.

PS: I still own XIU in my taxable account because it has significant capital gains.

BTW, I stupidly did sell some AAPL few years back in my taxable account because I wasn't happy with the dividend, my cost basis at the time was $ 95.

Not exact matches

To get residency realistically I got to earn 300 dollars in taxable income a week for a year, and in the meantime am allowed to go to school part time given the fact that I can pay for school with the money I have earned within the period I began to establish residency, so no outside cash because my bank accounts will be audited at the end of the year.

But with a taxable account (think savings accounts, but with investments), you want to minimize the tax bite because the income in these accounts is taxed annually to the investor.

People are always getting nervous about that, because then they say, «Well, imagine I have a 60/40 portfolio and I have only equities in my taxable account.

The reason I don't do it in my taxable accounts yet (Empire portfolio) is simply because the account size is too small.

This is especially important for actively managed funds because they can become closed to new accounts, but if you already had an account established in both your IRA and taxable brokerage you could continue to contribute to either one as you please.

Because the semiannual inflation adjustments of a TIPS bond are considered taxable income by the IRS, even though investors don't see that money until they sell the bond or it reaches maturity, some investors prefer to get TIPS through a TIPS mutual fund or exchange traded fund (ETF), or to only hold them in tax - deferred retirement accounts to avoid tax complications.

Don't hold the REITs in your corporate or non-registered account because they usually have a higher taxable distribution.

Because you won't have a steady paycheck, you should probably follow the standard advice and keep the full six months of living expenses in conservative investments held in a taxable account.

Every investor knows that fixed - income investments are best held in registered accounts, because interest is fully taxable at your marginal rate.

That way if there's a shortfall because the market doesn't perform, you're covered — but if the 529's do perform well, then you can just use those funds to cover college.And the bonus is you'll be able to use what you have in the taxable account for whatever you need at the time.

The equity holdings in the taxable and retirement accounts should provide their own inflation protection probably 2 - 3 times over because we don't withdraw any principal early on.

Investors holding bond investments in taxable accounts often turn to municipal bonds because of their tax advantage.

Because if you are like us and have other funds to live on for the initial years of early retirement (our taxable brokerage account in particular), then you can rollover funds from your Traditional IRA to Roth IRA slower and drag it out over many years since income up to $ 28,900 is all tax free (the combo of deduction and exemptions).

He does have some assets in large cap dividend - paying equities but he doesn't want them called away because they are in a taxable account and he has a low cost basis.

A Roth conversion can be a winning strategy even when the conversion rate is 35 % and ATRW is just 25 %, because over a longish but not unreasonable period of time, $ 25,000 invested tax - free can catch up with and pass $ 35,000 invested in a taxable account.

If the investments in your new Roth IRA lose value after the conversion, you'll have an adverse tax outcome, because the taxable distribution from the conversion will still be based on the value of the account on the conversion date.

This option is my least favourite simply because it would raise my taxes and although the returns would probably be higher than paying down the mortgage, it just wouldn't make sense to put money in a taxable account when the TFSA is available.

Because rebalancing can involve selling assets, it often results in a tax burden — but only if it's done within a taxable account.

In a taxable account, I wouldn't because the tax leakage from higher dividends is a cost that investors need to consider.

In taxable accounts, this is not a problem because the dividends received through XIN are taxable anyway and Canadian taxpayers will receive a credit for foreign taxes paid.

Because of Fundranker's success versus the market (see below), it stands to reason that it also can be used successfully in a taxable account, especially if you can handle its tax consequences with non-investment funds.

If your particular asset allocation would me that any cash or bond assets would be held in your taxable accounts, the assets should be cash assets, because their taxable yields are usually lower than bonds.

But because foreign dividends are fully taxable, holding them in tax - sheltered accounts still makes sense.

But if you hold bonds in a non-registered account and preferreds in your RRSP «that's just dumb,» he quips, because bond interest is fully taxable, while the fixed dividends from Canadian preferred shares are taxed at a much lower rate.

It's «almost» identical because the fund will take a small management fee, you will have to pay annual taxes on capital gains (if you hold the investment in a taxable account), and because the fund has to actually invest in the underlying stocks, there will be small differences due to rounding and timing of the fund's trades.

Now your portfolio is in balance, but it's not very tax - efficient because you're holding bonds in a taxable account.

However, because pre-tax dollars are generally used to fund both accounts, your taxable income for the year you contribute may be lowered — meaning you'll likely pay less in income tax.

Because of the flexibility of taxable accounts, investors may use them to invest in assets that are not found or allowed in retirement or employer sponsored accounts, including collectibles or life insurance.

The drop in my taxable is because I transferred $ 500 to my Loyal3 account — hence the big increase in that account.

The drop in my taxable is because I transferred funds to my Loyal3 account — hence the big increase in that account.

For instance, I hold XIU in a taxable account and I'd think twice about switching because I'll then have to worry about capital gains / losses.

If you're in a high tax bracket, an annuity may be a better choice than a taxable account because annuity contributions are tax - deferred.

Because they hold their dividend portfolios in retirement accounts where income is not taxable.

The taxable bonds should have a higher yield than tax - free munis and, because you're buying them in a retirement account, you don't have to worry about paying tax each year on the interest generated.

The nearer - term purchase is indeed a TR fund in a taxable account... I did that because of the transition of the allocation from heavier in stock funds to more in bond funds as the time to withdraw the money approaches.

This is because an investment return in a taxable account is, well, taxable.

In general, it is better to hold foreign equities like VTI, VEA etc. in your RRSP because in a taxable account the dividend income will be taxable at your marginal rate, as it is not eligible for the dividend tax crediIn general, it is better to hold foreign equities like VTI, VEA etc. in your RRSP because in a taxable account the dividend income will be taxable at your marginal rate, as it is not eligible for the dividend tax crediin your RRSP because in a taxable account the dividend income will be taxable at your marginal rate, as it is not eligible for the dividend tax crediin a taxable account the dividend income will be taxable at your marginal rate, as it is not eligible for the dividend tax credit.

It's because of the second factor I mentioned, namely, taxes on investment gains in the taxable account.

That's potentially better than having that money in a regular, taxable investment account where earnings are taxed each year, because tax - deferred compounding allows money to grow faster.

However, if you are a good saver and have a lot of money in retirement accounts, you may be surprised to find that because of all the extra taxable income from your required distributions, a pretty high tax rate applies after you are over 70 1/2.

In this case, 70 % of the withdrawal would be taxable, because your after - tax dollars made up only 30 % of the account.