The buckets are also important to tax planning. If you have an IRA, keep the cash and bonds there. It's taxed as ordinary income. If you have a ROTH, keep the high growth stocks there. If no Roth, then in a discount brokerage. You'll minimize the taxes on the IRA, and pay no tax on the ROTH (which will make up the bulk of your gains), or at least, low dividend and cap gains rates on stocks in the brokerage..
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The buckets are also important to tax planning. If you have an IRA, keep the cash and bonds there. It's taxed as ordinary income. If you have a ROTH, keep the high growth stocks there. If no Roth, then in a discount brokerage. You'll minimize the taxes on the IRA, and pay no tax on the ROTH (which will make up the bulk of your gains), or at least, low dividend and cap gains rates on stocks in the brokerage..
Post: Containing the Issue
Link to comment from October 14, 2021