Personal Investments • Re: Can a brokerage account be treated like an emergency fund if the earlier contributions have seen large gains?

Can a brokerage account be treated like an emergency fund if the earlier contributions have seen large gains?

People worry about paying capital gains taxes too much.

Paying taxes is never fun but if you have capital gains you most likely will pay the capital gains taxes sooner or later unless you die and the stock goes to your estate at a stepped up cost basis.

There are some special situations where they could be an issue but they are more the exception than the rule. For example things like;

1) You might be able to get in the 0% federal capital gains tax bracket in the future.
2) Your income is so high that you get above the 15% federal capital gains tax bracket.
3) You need to manage your income to get an ACA healthcare subsidy or avoid IRMAA taxes.

Statistics: Posted by Watty — Sat Jan 25, 2025 4:27 pm

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