Hello.
I have about 750K invested in the Growth Fund Of America. My very first investment about 40 years ago when I didn't know anything about investing in a more intelligent way. Every year I receive a significant amount of money in capital gains for which I pay taxes. Just this year that fund with other smaller ones got me to a total of 85,000 in capital gains
50% of my basis in my GFA investment was updated when my wife passed away in 2020
I am 75 so I have RMD payments but fortunately not as high because half of my retirement portfolio is in ROTH IRA's.
I also have a retirement pension (inherited from my wife) and Social Security income. I still work part time but contemplating putting a stop to this end of this tax year.
I file taxes as Single
2023 AGI 160,259
Taxable Income of 144,538
Total taxes paid in 2023 20,447
My living expenses are covered by my retirement pensions. I have been using capital gains to help my kids (as in early inheritance) and to buy real estate. I recently bought a house in Puerto Rico
I have two rentals that I manage myself, my office and a townhouse
So my question is: I am considering beginning to sell GFA. Currently the capital gains are killing me and those are taxed as income 100% vs whatever I sell from that fund only the difference between the amount I sell and the basis is taxed as long term capital gains. I have been thinking about this non stop the last several months. Is my strategy a good one?
Antonio
I have about 750K invested in the Growth Fund Of America. My very first investment about 40 years ago when I didn't know anything about investing in a more intelligent way. Every year I receive a significant amount of money in capital gains for which I pay taxes. Just this year that fund with other smaller ones got me to a total of 85,000 in capital gains
50% of my basis in my GFA investment was updated when my wife passed away in 2020
I am 75 so I have RMD payments but fortunately not as high because half of my retirement portfolio is in ROTH IRA's.
I also have a retirement pension (inherited from my wife) and Social Security income. I still work part time but contemplating putting a stop to this end of this tax year.
I file taxes as Single
2023 AGI 160,259
Taxable Income of 144,538
Total taxes paid in 2023 20,447
My living expenses are covered by my retirement pensions. I have been using capital gains to help my kids (as in early inheritance) and to buy real estate. I recently bought a house in Puerto Rico
I have two rentals that I manage myself, my office and a townhouse
So my question is: I am considering beginning to sell GFA. Currently the capital gains are killing me and those are taxed as income 100% vs whatever I sell from that fund only the difference between the amount I sell and the basis is taxed as long term capital gains. I have been thinking about this non stop the last several months. Is my strategy a good one?
Antonio
Statistics: Posted by Guitarplayer — Mon Sep 02, 2024 1:47 pm — Replies 4 — Views 281