Stock Market Thread

[D_Eclipse9916]

Boys

A. vaccine. is. Not. Going. To. Be. Available. This. Winter.

From someone who’s wife works in biomedical manufacturing and mother was (up until recently) a higher up at one of the major US manufacturers in a race to release a vaccine.


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Maybe publicly, but it will be available for the military before thanksgiving.

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You're going to pay capital gains on the growth whether you sell it as a $20 gain or two $10 gains. The question is whether you want to pay those taxes now or later, based on what else is happening in your situation. In some cases being taxed now is better because tax rates are low, especially if you're moving it to a better performing fund. In other cases, you may want to defer your tax liability because you had a bang up year and don't want to push your total income to a higher tax bracket. Raking gains is especially a good idea if you know you already have other losses to offset those gains. The man gets his in the rebalance and your post-tax basis for said fund goes up, while you're decreasing the liability on that rebalance through other loses.

IMO, a big component is whether you're paying long or short term gains on it. That's why I like to know what's rebalanced and when. It's very rare I'm paying short term capital gains, unless I'm fleeing something that is tanking.

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And someone smarter on money stuff than I am should explain to me why paying taxes every time Betterment and Wealthfront rebalance still keeps me ahead because it sure feels like Im getting fucked on that one every year.

The only real downside aside from the obvious restrictions of that money being in a 529 is that you lose 5% of that up front on initial investment.  But you definitely make out ahead in the long run from the tax benefits and growth in that fund, and SC's 529 is a killer program as far as they go.

To clarify, you can deduct 100% of contributions off state income tax. Your tax benefit is only as great as your state income tax liability. It's not zero, but it's not a federal deduction.

We don't use one because WA has no state income tax and there's no guarantee my kid is going to college and/or attending in the US (not all intl schools are eligible).

Everything here at the top especially. I have rebalanced a couple times but tried to time it for best case tax scenario. At the end of the day though for the next 10-15 years I hope I am only making more each year (and imagine most are in the same boat). So just get it done if it makes sense based on your risk assessment.

I do 529 for the tax advantage. 2 kids so a good hedged bet one of them uses in state, unfortunately NC 529 advantages weren’t as good as VA.