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Anyone out in Philly? 25 M Here
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Vtsax vs fxaix?
Decided to payoff my mortgage.
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Subject Expert
On the insurance/annuity thing I believe the answer is a flat no.
If you are holding bonds you can defer tax on gains with Treasury zeroes, and avoid taxes with Munis.
If you are holding stocks, total market index funds can defer taxes on most of the gains over the long run if you can really manage never to sell them. Treat them as glacial money.
You have to just get used to the taxable account.
Agree with GSK. Also, if you have or plan to have kids OR to further your own education later in life you could put some in a 529. You might even be able to convert it to Roth IRA (up to $35k) down the road. Depending on your state there may be a small tax credit or deduction as well.
If you end up in a taxable brokerage and are charitable remember to donate appreciated stock rather than cash.
Subject Expert
Donor Advised Fund. A charity run by an investment brokerage to which you can donate, receiving an upfront tax deduction, then advise about how to invest the money and when to disburse it and to which charities (advice which typically is always heeded).
Your post implies that you're at the bottom of the chart. Bit run through it to make sure you haven't missed anything.
https://u.cubeupload.com/demonlesondledon/FIREFlowChart.png
Indeed, this is not the right place for a portfolio and financial plan review. Not the right audience really and for sure not the right medium. Any one of the many financial Independence forms would be more appropriate, obviously I vote for bogleheads.
Perhaps consider buying a home so that in addition to have a tangible asset you can use, you can deduct mortgage interest. Creating a side hustle and company, where you have many more options for tax deductions.
Thank you. Thought about setting up a music studio in my basement but heard you can only deduct the amount you use and that it might not be worth it. Love the input you gave
529s if not in tax free state.
Real estate.
As far as cash value life insurance - unless you’re ultra high net worth they are almost always a bad idea. If you’re looking for an investment, invest. If you’re looking for insurance, buy a term policy. Mixing the 2 is generally worst of both worlds unless you have very specific circumstances. Brokers make massive commission off cash value policies.
Maybe do a quick AI query on all this for your situ.
Do not use AI for investing or financial advice. There be dragons
But 💯 agree with the insurance advice.
While this is not investment advice, why are you fearing taxable brokerage? If you really have appreciated assets in taxable brokerage, you can setup a charitable remainder trust (CRAT or CRUT) to donate appreciated assets like stocks to an irrevocable trust that pays you an income stream.
NIIT. And I live in a very high tax state that taxes capital gains as ordinary income.