04-08-2025, 05:29 PM
Hello De64. welcome to the forum.
I don't see anything wrong with how you are investing. There are no rules as to how to build your portfolios. You may not want to make them identical depending on your situation. For example, you may want to focus on the higher qualified dividend rate equities in your personal brokerage since qualified dividends are taxed at the capital gains rate. Orrrr ... lean more to low payout or growth stocks in the personal account and just focus on long-term capital gains in that account to minimize taxes and control when the taxable events occur.
Since you're considering a back-door Roth, you are implying that your income is over the limit that prevents direct investment in the Roth. You'll have to be the judge of that. There are several things I would consider besides the tax-free withdrawals/income to you: Roth IRAs have no RMD, withdrawals (especially RMDs) could eventually put you in the IRMAA range, if you aren't already, which would add to the cost of Medicare, and your non-spouse beneficiaries could be forced into a higher tax bracket due to the 10 year withdrawal rule.
Those are just my thoughts. Again, welcome to the forum and hope you'll stick around and join in.
I don't see anything wrong with how you are investing. There are no rules as to how to build your portfolios. You may not want to make them identical depending on your situation. For example, you may want to focus on the higher qualified dividend rate equities in your personal brokerage since qualified dividends are taxed at the capital gains rate. Orrrr ... lean more to low payout or growth stocks in the personal account and just focus on long-term capital gains in that account to minimize taxes and control when the taxable events occur.
Since you're considering a back-door Roth, you are implying that your income is over the limit that prevents direct investment in the Roth. You'll have to be the judge of that. There are several things I would consider besides the tax-free withdrawals/income to you: Roth IRAs have no RMD, withdrawals (especially RMDs) could eventually put you in the IRMAA range, if you aren't already, which would add to the cost of Medicare, and your non-spouse beneficiaries could be forced into a higher tax bracket due to the 10 year withdrawal rule.
Those are just my thoughts. Again, welcome to the forum and hope you'll stick around and join in.
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“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan
“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan